-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, H8NZNVHHp1hPnhrtl7ApC6jBRyENM6VW1vn4L4UC8H/zNe1cFesetLPOuubMYvHk sTCeLdYqxBlmd4d+Dq63Hg== 0000950124-96-000806.txt : 19960222 0000950124-96-000806.hdr.sgml : 19960222 ACCESSION NUMBER: 0000950124-96-000806 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19960221 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: NORTHWESTERN MUTUAL VARIABLE LIFE ACCOUNT CENTRAL INDEX KEY: 0000742277 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] STATE OF INCORPORATION: WI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-03989 FILM NUMBER: 96523538 BUSINESS ADDRESS: STREET 1: 720 E WISCONSIN AVE CITY: MILWAUKEE STATE: WI ZIP: 53202 BUSINESS PHONE: 4142711444 MAIL ADDRESS: STREET 1: 720 EAST WISCONSIN AVENUE CITY: MILWAUKEE STATE: WI ZIP: 53202 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NORTHWESTERN MUTUAL SERIES FUND INC CENTRAL INDEX KEY: 0000742212 STANDARD INDUSTRIAL CLASSIFICATION: [] IRS NUMBER: 391603401 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-03990 FILM NUMBER: 96523539 BUSINESS ADDRESS: STREET 1: 720 E WISCONSIN AVE CITY: MILWAUKEE STATE: WI ZIP: 53202 BUSINESS PHONE: 4142711444 MAIL ADDRESS: STREET 1: 720 EAST WISCONSIN AVE CITY: MILWAUKEE STATE: WI ZIP: 53202 FORMER COMPANY: FORMER CONFORMED NAME: NORTHWESTERN MUTUAL VARIABLE LIFE SERIES FUND INC DATE OF NAME CHANGE: 19940830 N-30D 1 N-30D 1 December 31, 1995 ANNUAL REPORT Northwestern Mutual Variable Life Account NORTHWESTERN MUTUAL SERIES FUND, INC. Northwestern Mutual Life(R) 720 East Wisconsin Avenue Milwaukee, Wisconsin 53202 2 NORTHWESTERN MUTUAL SERIES FUND, INC. DIRECTORS James D. Ericson . President and Chief Executive Officer, Northwestern Mutual Life, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Milwaukee Martin F. Stein . . . . . . . . . . . Chairman of the Board, EyeCare One Corporation, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Milwaukee John K. MacIver . . . . . . . . . Partner, Michael Best & Friedrich Attorneys at Law, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Milwaukee Stephen N. Graff . . . . . . . . . . . . . . Retired Partner, Arthur Andersen & Co., . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Milwaukee William J. Blake . . . . . . . . . . . . . . Chairman, Blake Financial Corporation, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Milwaukee OFFICERS James D. Ericson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . President Mark G. Doll . . . . . . . . . . . . . . . . . . . . . . Vice President & Treasurer Merrill C. Lundberg . . . . . . . . . . . . . . . . . . . . . . . . . . . . Secretary Gary E. Long . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Controller
This report is submitted for the general information of owners of Northwestern Mutual Variable Life policies. This report is not authorized for distribution to prospective purchasers of variable life policies unless it is accompanied by an effective prospectus. Northwestern Mutual Variable Life policies are sold through individuals who, in addition to being licensed life insurance agents of Northwestern Mutual Life, are registered representatives of Northwestern Mutual Investment Services, Inc., a wholly-owned subsidiary of Northwestern Mutual Life and a registered broker-dealer under the Securities Exchange Act of 1934 and a member of the National Association of Securities Dealers, Inc. Northwestern Mutual Life PO Box 3095 Milwaukee WI 53201-3095 Forwarding and Return Postage Guaranteed Address Correction Requested 3 POLICYOWNER PRIVILEGES FREE TRANSFERS AMONG PORTFOLIOS A limited number of free transfers per year are available with your policy. Same day transfers are permitted among our investment portfolios by FAX 414-299-4268. The appropriate form (form number 18-1425) must be used. A blank form is included at the end of this report. Additional forms are available from your Northwestern Mutual Life Agent. NORTHWESTERN MUTUAL LIFE'S VARIABLE LIFE POLICIES ARE PARTICIPATING* Policies are expected to pay dividends, based on the company's recent mortality and expense experience. SOME OF THE POPULAR ADDITIONAL BENEFITS WHICH MAY BE AVAILABLE TO POLICYOWNERS INCLUDE THE FOLLOWING (SUBJECT TO UNDERWRITING AND PAYMENT OF APPROPRIATE PREMIUM). OPTIONAL WAIVER OF PREMIUM BENEFIT The Waiver of Premium Benefit waives premiums during total disability. Available at ages 0-59. OPTIONAL ACCIDENTAL DEATH BENEFIT The Accidental Death Benefit provides an additional death benefit when death results from accidental bodily injury. Available at ages 0-65. OPTIONAL ADDITIONAL PURCHASE BENEFIT When the Additional Purchase Benefit is purchased, the company agrees to issue additional policies on several specified purchase dates without requiring evidence of insurability. Available at ages 0-38. CONTACT YOUR NORTHWESTERN MUTUAL LIFE AGENT IF YOU WISH TO LEARN MORE ABOUT ANY OF THE POLICYOWNER PRIVILEGES DESCRIBED ABOVE. * Dividends are based on actual experiences and are not guaranteed. 4 TO OUR POLICYOWNERS: A banner year in the stock and bond markets helped many of Northwestern's portfolios turn in strong performances for 1995. During the second half, when the Dow galloped past the 5,000 mark, these portfolios continued to enjoy the robust gains made during the first half. For the separate portfolios, judicious stock selection played a critical role. For example, in choosing more conservative stocks within the technology sector, the Aggressive Growth Stock Portfolio dodged the biggest losses as the sector sputtered in the second half. Similarly, the Growth Stock Portfolio exploited increases in financials, telecommunications, health care and consumer non-durable stocks. The Growth and Income Stock Portfolio, which tends to approximate the sector weightings of the market, reaped the returns of the overall market rally. Finally, though many international funds suffered during the second half, the International Equity Portfolio turned in a very respectable comparative performance in part due to good returns in several European markets. For the US financial markets as a whole, slow economic growth and low inflation proved to be extremely favorable for financial assets. Interest rates have fallen steadily to levels not seen since early 1994, and corporations have turned in record profits through cost cutting, higher operating margins and higher productivity. Also fueling the current market rally is a flood of money pouring into stock mutual funds from retirement-oriented vehicles such as 401(k)s. A wave of mergers and acquisitions along with share buy-back programs buoyed the market while Initial Public Offerings (IPOs) and secondary offerings have surged to record levels. From our perspective, there are several signs that the US economy is coasting toward a slowdown. Anemic housing starts, sluggish auto sales and poor retail sales indicate a consumer reluctance to spend. Already saddled with bleaker job prospects and high levels of debt, consumers seem to be reacting to the continuing trend of corporate layoffs. Faced with this eroding consumer confidence, the manufacturing sector is also feeling the pinch of a slower economy. We view these as important short-term developments. Amid this economic sluggishness, however, we see several bright spots. After maintaining a relatively tight monetary policy during the early part of the year, the Federal Reserve loosened its grip on the economy. Due to the economic slowdown and a lack of inflationary pressure, the Fed can be expected to gradually lower interest rates. Moreover, if significant progress is made on balancing the budget, the Fed should begin to aggressively lower short-term interest rates. Inflation, which remained subdued throughout the recovery, appears poised to head even lower during the slowdown. Bottlenecks and shortages - -- which normally put pressure on inflation -- are now largely absent. Looking ahead, we think it's wise to expect more volatility in the upcoming year. Though there are many positive market trends, it is difficult to predict where this unprecedented bull market will head in the future. It would not be unreasonable to expect a setback in the financial markets at some point. But, in our view, maintaining a long-term investment focus is the antidote to market volatility. 1 5 INDEX 500 STOCK PORTFOLIO The Standard & Poor's 500 Index provided great performance in 1995 and outperformed the majority of active stock managers. Northwestern's Index 500 Portfolio is designed to achieve investment results that approximate the performance of the Standard & Poor's 500 Composite Stock Price Index and continues to achieve that objective. The portfolio is fully invested in equities. As indicated on the graph, on April 30, 1993, the portfolio was indexed to approximate the performance of the Standard & Poor's 500 Composite Stock Price Index. Prior to April 30, 1993, the portfolio was actively managed. The Standard & Poor's 500 Composite Stock Price Index is an index of unmanaged groups of 500 selected common stocks, most of which are listed on the New York Stock Exchange. The index is heavily weighted toward stocks with large market capitalizations and represents approximately two-thirds of the total market value of all domestic common stocks. [Camera Ready Graph] This chart assumes an initial investment of $10,000 made on 12/31/85. Returns shown include deductions for management and other fund expenses, and reinvestment of all dividends. Returns exclude deductions for separate account sales loads and account fees. Past performance is not predictive of future performance. Investment return and principal value will fluctuate, so that your shares, when redeemed, may be worth more or less than their original cost. The net investment rates of return shown on page 10 reflect mortality and expense risk charges deducted from the assets of the separate account. The cost of insurance protection, which is not reflected in the returns shown on this chart, would make the returns significantly lower. Investors are urged to obtain a personalized illustration of historical performance which reflects the cost of insurance protection. Average Annual Total Return For Periods Ended December 31, 1995
One Five Ten Year Years Years ----- ----- ----- Index 500 Stock Portfolio 37.25% 15.68% 12.29% S&P 500 Index 37.40% 16.54% 14.83% 12/85 12/86 12/87 12/88 12/89 Index 500 Stock Portfolio $10,000 $11,536 $12,483 $13,585 $16,084 S&P 500 Index $10,000 $11,860 $12,465 $14,534 $19,141 12/90 12/91 12/92 12/93 12/94 12/95 Index 500 Stock Portfolio $15,389 $19,972 $20,879 $22,946 $23,225 $31,877 S&P 500 Index $18,548 $24,205 $26,045 $28,675 $29,019 $39,872
A solid vertical line is drawn at 4/30/93 to indicate that the portfolio was indexed on 4/30/93 and actively managed prior to that date. 2 6 GROWTH STOCK PORTFOLIO The performance of the Growth Stock Portfolio was helped by gains in several sectors, including financials, telecommunications, health care and consumer non-durable stocks. During the second half, the portfolio maintained a relatively small cash position, but shifted the types of stocks held in anticipation of weaker economic activity and slower corporate profit growth in the upcoming year. Sector weights were reduced in consumer cyclicals, basic materials and technology, given the economic sensitivity of these industries. Cash levels were kept close to seven percent of assets throughout the period. The portfolio remains well diversified across major market sectors, with strategy focused on identifying high quality growth companies. The Standard & Poor's 500 Composite Stock Price Index is an index of unmanaged groups of 500 selected common stocks, most of which are listed on the New York Stock Exchange. The index is heavily weighted toward stocks with large market capitalizations and represents approximately two-thirds of the total market value of all domestic common stocks. [Camera Ready Graph] This chart assumes an initial investment of $10,000 made on 5/3/94 (commencement of operations). Returns shown include deductions for management and other fund expenses, and reinvestment of all dividends. Returns exclude deductions for separate account sales loads and account fees. Past performance is not predictive of future performance. Investment return and principal value will fluctuate, so that your shares, when redeemed, may be worth more or less than their original cost. The net investment rates of return shown on page 10 reflect mortality and expense risk charges deducted from the assets of the separate account. The cost of insurance protection, which is not reflected in the returns shown on this chart, would make the returns significantly lower. Investors are urged to obtain a personalized illustration of historical performance which reflects the cost of insurance protection. Average Annual Total Return For Periods Ended December 31, 1995
One Since Year Inception* ---- --------- Growth Stock Portfolio 30.82% 18.63% S&P 500 Index 37.40% 23.37% *May 3, 1994 inception. 5/3/94 12/94 12/95 Growth Stock Portfolio $10,000 $10,155 $13,285 S&P 500 Index $10,000 $10,320 $14,180
3 7 GROWTH AND INCOME STOCK PORTFOLIO During the second half, the Growth and Income Stock Portfolio trailed the returns of the S&P 500 Index. Recent market trends have not favored the portfolio's style of investing, with investors currently focused on short-term earnings momentum rather than long-term value. Gains in the overall market have tended to be concentrated among relatively few companies. This portfolio is broadly diversified, and should be well positioned to benefit when the market again broadens out. Stock selection, rather than industry sector rotation, continues to be the major determinant of portfolio performance. The portfolio maintained a fully invested position during the second half, with cash averaging two to three percent of assets. The Standard & Poor's 500 Composite Stock Price Index is an index of unmanaged groups of 500 selected common stocks, most of which are listed on the New York Stock Exchange. The index is heavily weighted toward stocks with large market capitalizations and represents approximately two-thirds of the total market value of all domestic common stocks. [Camera Ready Graph] This chart assumes an initial investment of $10,000 made on 5/3/94 (commencement of operations). Returns shown include deductions for management and other fund expenses, and reinvestment of all dividends. Returns exclude deductions for separate account sales loads and account fees. Past performance is not predictive of future performance. Investment return and principal value will fluctuate, so that your shares, when redeemed, may be worth more or less than their original cost. The net investment rates of return shown on page 10 reflect mortality and expense risk charges deducted from the assets of the separate account. The cost of insurance protection, which is not reflected in the returns shown on this chart, would make the returns significantly lower. Investors are urged to obtain a personalized illustration of historical performance which reflects the cost of insurance protection. Average Annual Total Return For Periods Ended December 31, 1995
One Since Year Inception* ---- ---------- Growth and Income Stock Portfolio 31.12% 17.93% S&P 500 Index 37.40% 23.37% *May 3, 1994 inception. 5/3/94 12/94 12/95 Growth and Income Stock Portfolio $10,000 $10,034 $13,156 S&P 500 Index $10,000 $10,320 $14,180
4 8 AGGRESSIVE GROWTH STOCK PORTFOLIO During 1995, the Aggressive Growth Portfolio experienced very strong returns, in part because of its strategy in technology stocks. Even though this industry had phenomenal performance during the first half of the year, the Aggressive Growth Portfolio concentrated on the less speculative issues in the sector. In the fourth quarter, when technology stocks faced their biggest losses, this more conservative approach benefited the portfolio. Meanwhile, the portfolio's exposure to the health care and consumer cyclical sectors increased somewhat, largely due to their improved performance. Weightings in the utilities and basic materials sectors declined through selective selling and relative underperformance. Cash reached a fourth quarter low of five percent, ending the year at seven percent. Aggressive Growth investors may face increased volatility in the upcoming year. If the markets level off or decline, there may be more downside risk with smaller, less seasoned companies. However, stock selection continues to be the primary focus of the portfolio. Since the portfolio invests primarily in small capitalization issues, the indices that best reflect the portfolio's performance are Wilshire Next 1750 Index and Wilshire Small Cap Index. The Wilshire Next 1750 is an unmanaged, equally weighted index. Included in this index are those stocks which are ranked 750 to 2500 by market capitalization in the Wilshire 5000. The largest sectors represented in this index are financial services, consumer services and basic industry. Its average market capitalization is approximately $515 million as of December 31, 1995. [CAMERA READY GRAPH] The Wilshire Small Cap Index is a subset of the Wilshire Next 1750 and includes 250 stocks chosen based upon their size, sector and liquidity characteristics. Each stock is equally weighted in this unmanaged index. The average market capitalization is approximately $620 million as of December 31, 1995. The largest sector weightings include financial services, consumer services and technology. On May 3, 1994, the Northwestern Mutual Aggressive Growth Stock Fund, Inc. (the "Fund") merged into the Northwestern Mutual Series Fund, Inc. Aggressive Growth Stock Portfolio (the "Portfolio"). The Portfolio had no assets prior to the merger. After the merger, the assets of the Portfolio were those of the Fund. The investment objectives, policies, management and expenses of the Portfolio are identical to those of the Fund. Accordingly, the performance of the Fund prior to the merge is included with the performance of the Portfolio in the graph and total return figures above. This chart assumes an initial investment of $10,000 made on 11/30/90 (commencement of the Fund's operations). Returns shown include deductions for management and other fund expenses, and reinvestment of all dividends. Returns exclude deductions for separate account sales loads and account fees. Past performance is not predictive of future performance. Investment return and principal value will fluctuate, so that your shares, when redeemed, may be worth more or less than their original cost. The net investment rates of return shown on page 10 reflect mortality and expense risk charges deducted from the assets of the separate account. The cost of insurance protection, which is not reflected in the returns shown on this chart, would make the returns significantly lower. Investors are urged to obtain a personalized illustration of historical performance which reflects the cost of insurance protection. Average Annual Total Return For Periods Ended December 31, 1995
One Five Since Year Year Inception* ---- ---- --------- Aggressive Growth Stock Portfolio 39.29% 23.65% 23.66% Wilshire Small Cap 26.58% 20.28% 20.97% Whilshire Next 1750 30.26% 21.08% 21.76% *November 30, 1990 inception. 11/90 12/90 12/91 12/92 Aggressive Growth Stock Portfolio $10,000 $10,189 $15,894 $16,839 Wilshire Small Cap $10,000 $10,459 $15,873 $18,188 Whilshire Next 1750 $10,000 $10,459 $15,325 $18,040 12/93 12/94 12/95 Aggressive Growth Stock Portfolio $20,057 $21,141 $29,448 Wilshire Small Cap $21,464 $20,801 $26,330 Whilshire Next 1750 $21,186 $20,896 $27,219
5 9 INTERNATIONAL EQUITY PORTFOLIO The second half proved to be a challenging investment period for the global stock markets and for the International Equity Portfolio, as well. Most foreign markets significantly underperformed versus the US market, although returns were still positive. Moreover, the strong performance of the US market attracted capital away from overseas markets, further reinforcing these trends. Portfolio strategy maintains a long-term investment horizon, and seeks to identify the best values across all markets. This low turnover approach resulted in relatively few changes in geographic or industry sector weights. Cash dropped slightly to nine percent. The portfolio continued to be heavily weighted in Europe and underweighted in Japan, with some selective exposure to the emerging markets. The recent trends of sluggish foreign economic growth and low inflation have prompted foreign central banks to begin lowering interest rates to stimulate growth. This should bode well for the portfolio in the months ahead. [Camera Ready Graph] As depicted in the graph, the International Equity Portfolio is compared against the Morgan Stanley Capital International EAFE ("Europe-Australia-Far East") Index. The index is composed of approximately 1100 companies in 20 countries in Europe and the Pacific Basin. The objective of the index is to reflect the movements of stock markets in these countries by representing an unmanaged (indexed) portfolio within each country. The indices are constructed so that companies chosen represent about 60% of market capitalization in each market, industry composition of the market is reflected and a cross section of large, medium, and small cap stocks is included taking into account liquidity concerns. The index is calculated in U.S.$. On May 3, 1994, the Northwestern Mutual International Equity Fund, Inc. (the "Fund") merged into the Northwestern Mutual Series Fund, Inc. International Equity Portfolio (the "Portfolio"). The Portfolio had no assets prior to the merger. After the merger, the assets of the Portfolio were those of the Fund. The investment objectives, policies, management and expenses of the Portfolio are identical to those of the Fund. Accordingly, the performance of the Fund prior to the merge is included with the performance of the Portfolio in the graph and total return figures above. This chart assumes an initial investment of $10,000 made on 4/30/93 (commencement of the Fund's operations). Returns shown include deductions for management and other fund expenses, and reinvestment of all dividends. Returns exclude deductions for separate account sales loads and account fees. Past performance is not predictive of future performance. Investment return and principal value will fluctuate, so that your shares, when redeemed, may be worth more or less than their original cost. The net investment rates of return shown on page 10 reflect mortality and expense risk charges deducted from the assets of the separate account. The cost of insurance protection, which is not reflected in the returns shown on this chart, would make the returns significantly lower. Investors are urged to obtain a personalized illustration of historical performance which reflects the cost of insurance protection. Average Annual Total Return For Periods Ended December 31, 1995
One Since Year Inception* ---- --------- International Equity Stock Portfolio 14.57% 14.23% EAFE 11.55% 11.04% *April 30, 1993 inception. 4/93 12/93 12/94 12/95 International Equity Stock Portfolio $10,000 $12,464 $12,451 $14,266 EAFE $10,000 $10,970 $11,859 $13,228
6 10 SELECT BOND PORTFOLIO After a brief rise in interest rates early in the summer, the bond market continued its powerful rally. This was due to a combination of weakening economic growth, falling inflation and optimism involving a balanced budget from Washington. Two-year Treasury rates fell from 5.79 percent to 5.15 percent, while 30-year Treasury rates fell 65 basis points to 5.95 percent. The portfolio's average maturity was lengthened as long rates approached seven percent during the summer, benefiting from the subsequent rally that took long rates below six percent. This strategy was in anticipation of progress in Washington, and the expected enthusiasm for bonds. The portfolio maintained a large weighting in corporate bonds, with an economy that is producing excellent corporate cash flow and improving credit quality. This was the best performing bond market sector for the second half, as well as the entire year. The portfolio weightings at year-end were 13 percent cash, 15 percent Treasurys, 21 percent mortgages and 51 percent corporates. [Camera Ready Graph] Since the portfolio invests broadly in U.S. Government, mortgage and corporate bonds, the graph depicts an appropriate comparison to the Merrill Lynch Domestic Master Index. The index is an unmanaged market value weighted index comprised of U.S. Government, mortgage and investment-grade corporate bonds. The index measures the income provided by, and the price changes of, the underlying securities. This chart assumes an initial investment of $10,000 made on 12/31/85. Returns shown include deductions for management and other fund expenses, and reinvestment of all dividends. Returns exclude deductions for separate account sales loads and account fees. Past performance is not predictive of future performance. Investment return and principal value will fluctuate, so that your shares, when redeemed, may be worth more or less than their original cost. The net investment rates of return shown on page 10 reflect mortality and expense risk charges deducted from the assets of the separate account. The cost of insurance protection, which is not reflected in the returns shown on this chart, would make the returns significantly lower. Investors are urged to obtain a personalized illustration of historical performance which reflects the cost of insurance protection. Average Annual Total Return For Periods Ended December 31, 1995
One Five Ten Year Years Years ---- ----- ----- Select Bond Portfolio 19.10% 10.27% 9.84% Merrill Lynch Domestic Master Index 18.46% 9.56% 9.63% 12/85 12/86 12/87 12/88 12/89 Select Bond Portfolio $10,000 $11,868 $11,743 $12,708 $14,507 Merrill Lynch Domestic Master Index $10,000 $11,522 $11,799 $12,747 $14,555 12/90 12/91 12/92 12/93 12/94 12/95 Select Bond Portfolio $15,682 $18,399 $19,824 $21,967 $21,465 $25,564 Merrill Lynch Domestic Master Index $15,880 $18,398 $19,792 $21,776 $21,161 $25,068
7 11 HIGH YIELD BOND PORTFOLIO High yield market returns lagged the investment grade bond market during the second half of the year. It is not unusual for the high yield market to underperform in a bond market rally since the high yield market is less sensitive to changes in the general level of interest rates. The high yield market finished 1995 on a cautious note as a result of concerns about an economic slowdown and an uptick in defaults. Although defaults are up and the credit cycle is maturing, an imminent resurgence in default rates to the levels seen in the late 1980s is not expected. The High Yield Bond Portfolio adopted a more defensive posture in the second half of the year in anticipation of slower economic growth. Sector weights were reduced in cyclical sectors such as home building, steel and auto-related industries. At year end, the top industry sector weights were in stable industries, including cable/telecommunications, gaming and retail-food. The average yield on the portfolio was approximately 11.15 percent, the average maturity was just over eight years. The portfolio was fully invested with a cash position of about 2.2 percent. The total return performance for the High Yield Bond Portfolio is shown in comparison with the Salomon Brothers High Yield Market Index and the Lehman Brothers High Yield Intermediate Market Index. The Lehman Brothers index is thought to be a better measure of portfolio performance since it has a quality and maturity profile that more closely resembles the High Yield Bond Portfolio. [Camera Ready Graph] The Salomon Brothers High Yield Market Index includes cash-pay and deferred-interest corporate bonds with remaining maturities of at least one year. All bonds in the index are publicly placed, have a fixed coupon and are non-convertible. Bonds issued under Rule 144A are added after the issuer has registered the security with the Securities and Exchange Commission. The index is an unmanaged market value weighted index and measures the income provided by, and the price changes of, the underlying securities. The Lehman Brothers High Yield Intermediate Market Index is made up of dollar denominated, nonconvertible, SEC publicly registered fixed rate noninvestment grade issues. The bonds will have remaining maturities of between one and ten years and have an outstanding par value of at least $100 million. Yankee and global bonds (SEC registered) of issuers in G-7 countries are included. Original issue zeroes and step-up coupon structures are also included, however, the index excludes pay-in-kind (PIK) bonds. Each bond must be rated Ba1 or lower by Moody's Investor Service. If a Moody's rating is unavailable, the bonds must be rated BB+ or lower by Standard & Poor's, or by Fitch if an S&P rating is unavailable. A small number of unrated bonds are included in the index; to be eligible they must have previously held a high yield rating or have been associated with a high yield issuer. The index is an unmanaged market value weighted index and measures the income provided by, and the price changes of, the underlying securities. This chart assumes an initial investment of $10,000 made on 5/3/94 (commencement of operations). Returns shown include deductions for management and other fund expenses, and reinvestment of all dividends. Returns exclude deductions for separate account sales loads and account fees. Past performance is not predictive of future performance. Investment return and principal value will fluctuate, so that your shares, when redeemed, may be worth more or less than their original cost. The net investment rates of return shown on page 10 reflect mortality and expense risk charges deducted from the assets of the separate account. The cost of insurance protection, which is not reflected in the returns shown on this chart, would make the returns significantly lower. Investors are urged to obtain a personalized illustration of historical performance which reflects the cost of insurance protection. Average Annual Total Return For Periods Ended December 31, 1995
One Since Year Inception* ---- --------- High Yield Bond Portfolio 16.78% 11.76% Salomon Brothers High Yield Market Index 19.71% 12.62% Lehman Brothers High Yield Intermediate Market Index 17.32% 11.32% *May 3, 1994 inception. 5/3/94 12/94 12/95 High Yield Bond Portfolio $10,000 $10,302 $12,030 Salomon Brothers High Yield Market Index $10,000 $10,179 $12,185 Lehman Brothers High Yield Intermediate Market Index $10,000 $10,188 $11,952
8 12 MONEY MARKET PORTFOLIO Money market rates fell about 50 basis points during the period, reflecting the December rate cut by the Federal Reserve and expectations of further easing in early 1996. The consensus forecast is that short term rates will fall substantially in the first half of the year. As a result, investors have been willing to accept lower yields to extend maturities and lock in these rates relative to purchasing shorter maturity investments. The Money Market Portfolio maintained an average maturity shorter than the broad universe of money market funds. This is due to the belief that the Fed will be cautious about lowering rates, and that the market is overly optimistic about the extent of future rate cuts. BALANCED PORTFOLIO Benefiting from a relatively fully invested position and an aggressively structured bond portfolio, the fund was able to take advantage of the positive trends in the stock and bond markets. As of year end, the asset mix in the Balanced Portfolio was 54 percent stocks, 35 percent bonds, with cash at 11 percent of the portfolio. The asset mix remained fairly steady for most of the period, although there were some modest shifts between stocks and bonds to take advantage of market opportunities. The stock market significantly outperformed other asset categories and we continue to favor equities over fixed income investments. The portfolio's heavy weighting in corporate bonds presumes little risk of a recession this year. The Federal Reserve Board's current stance on easing monetary policy appears to bode well for the financial markets, at least in the near term. The portfolio is positioned to benefit from a further rise in the stock and bond markets. However, any change in the recent favorable trends, such as higher inflation or interest rates, would trigger a less aggressive asset mix in the portfolio. [Camera Ready Graph] In the graph, the portfolio is compared against three indices representing the three major components of the portfolio: equities, fixed income and cash equivalent investments. The Merrill Lynch Domestic Master Index is an unmanaged market value weighted index comprised of U.S. Government, mortgage and investment-grade corporate bonds. The index measures the income provided by, and the price changes of, the underlying securities. The Standard & Poor's 500 Composite Stock Price Index is an index of unmanaged groups of 500 selected common stocks, most of which are listed on the New York Stock Exchange. The index is heavily weighted toward stocks with large market capitalizations and represents approximately two-thirds of the total market value of all domestic common stocks. This chart assumes an initial investment of $10,000 made on 12/31/85. Returns shown include deductions for management and other fund expenses, and reinvestment of all dividends. Returns exclude deductions for separate account sales loads and account fees. Past performance is not predictive of future performance. Investment return and principal value will fluctuate, so that your shares, when redeemed, may be worth more or less than their original cost. The net investment rates of return shown on page 10 reflect mortality and expense risk charges deducted from the assets of the separate account. The cost of insurance protection, which is not reflected in the returns shown on this chart, would make the returns significantly lower. Investors are urged to obtain a personalized illustration of historical performance which reflects the cost of insurance protection. Average Annual Total Return For Periods Ended December 31, 1995
One Five Ten Year Years Years ---- ----- ----- Balanced Portfolio 26.39% 12.63% 11.17% S&P 500 Index 37.40% 16.54% 14.83% Merrill Lynch Domestic Master Index 18.46% 9.56% 9.63% Merrill Lynch 91-Day Treasury Bill 6.03% 4.74% 6.14% 12/85 12/86 12/87 12/88 12/89 Balanced Portfolio $10,000 $11,696 $12,532 $13,544 $15,665 S&P 500 Index $10,000 $11,860 $12,465 $14,534 $19,141 Merrill Lynch Domestic Master Index $10,000 $11,522 $11,799 $12,747 $14,555 Merrill Lynch 91-Day Treasury Bill $10,000 $10,675 $11,393 $12,182 $13,277 12/90 12/91 12/92 12/93 12/94 12/95 Balanced Portfolio $15,904 $19,615 $20,716 $22,768 $22,805 $28,823 S&P 500 Index $18,548 $24,205 $26,045 $28,675 $29,019 $39,872 Merrill Lynch Domestic Master Index $15,880 $18,398 $19,792 $21,776 $21,161 $25,068 Merrill Lynch 91-Day Treasury Bill $14,395 $15,314 $15,915 $16,423 $17,111 $18,143
9 13 VARIABLE LIFE ACCOUNT The annual report of Northwestern Mutual Series Fund Inc., is included because all payments to the Variable Life Account are invested in one or more Portfolios of this Fund. The Series Fund is a mutual fund currently offering shares only to The Northwestern Mutual Life Insurance Company and its separate investment accounts. THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY /s/ JAMES D. ERICSON James D. Ericson, President and C.E.O. The following table shows the net investment rates of return for each of the divisions of the Variable Life Account.
POLICIES ISSUED ON OR AFTER OCTOBER 11, POLICIES ISSUED BEFORE OCTOBER 11, 1995 -------------- ------------------------------------------------------------------ DIVISION 1995+ 1995 1994 1993 1992 1991 1990 1989 1988 - ------------------------------ -------------- ----- ----- ----- ---- ----- ----- ----- ---- Index 500 Stock*.............. 6.61% 36.30% 0.51% 9.13% 3.81% 28.88% -4.99% 17.47% 8.07% Growth Stock.................. 6.34 29.91 1.08** N/A N/A N/A N/A N/A N/A Growth and Income Stock....... 6.29 30.21 -0.13** N/A N/A N/A N/A N/A N/A Aggressive Growth Stock....... 9.83 38.32 3.98** N/A N/A N/A N/A N/A N/A International Equity.......... 2.83 13.78 -0.36** N/A N/A N/A N/A N/A N/A Select Bond................... 3.66 18.27 -2.96 10.04 6.99 16.51 7.34 13.27 7.47 High Yield Bond............... 0.89 15.96 2.54** N/A N/A N/A N/A N/A N/A Money Market.................. 1.10 5.09 3.33 2.19 2.77 5.13 7.49 8.45 6.74 Balanced...................... 4.97 25.51 -0.54 9.14 4.87 22.47 0.81 14.76 7.33
+ Reflects actual return from October 11, 1995 (Inception Date) through December 31, 1995. * As of April 30, 1993 the portfolio was indexed to the S&P 500 Stock Index; prior to that date the portfolio was actively managed. ** Growth Stock, Growth and Income Stock, Aggressive Growth Stock, International Equity and High Yield Bond Divisions began operations on May 3, 1994. The investment rates of return reflect performance from May 3, 1994. The net investment rates of return shown above should not be considered a representation of investment results which may be anticipated in the future. The net investment rates of return include investment income and capital gains. See the prospectus for a description of the effect of investment performance on policy benefits. Policy benefits reflect the investment rates of return of the divisions in which the policy is invested, and will vary depending on the fees and expenses associated with the policy. Policy fees and expenses will vary with each individual investor. All common fees of the divisions of the Variable Life Account are reflected in the net investment rates of return shown above. AN INVESTMENT IN THE MONEY MARKET PORTFOLIO IS NEITHER INSURED NOR GUARANTEED BY THE U.S. GOVERNMENT AND THERE CAN BE NO ASSURANCE THAT THE PORTFOLIO WILL BE ABLE TO MAINTAIN A STABLE NET ASSET VALUE OF $1.00 PER SHARE. Note: "Standard and Poor's 500" and "S&P 500(R)" are trademarks of McGraw-Hill, Inc. and have been licensed for use by The Northwestern Mutual Life Insurance Company. The Series Funds and its Portfolios are not sponsored, endorsed, sold or promoted by Standard & Poor's, and Standard & Poor's makes no representation regarding the advisability of investing in them. 10 14 [PRICE WATERHOUSE LLP LETTERHEAD] REPORT OF INDEPENDENT ACCOUNTANTS To The Northwestern Mutual Life Insurance Company and Policyowners of Northwestern Mutual Variable Life Account In our opinion, the accompanying combined statement of assets and liabilities and the related combined and separate statements of operations and changes in equity present fairly, in all material respects, the financial position of Northwestern Mutual Variable Life Account and the Index 500 Stock Division, Growth Stock Division, Growth and Income Stock Division, Aggressive Growth Stock Division, International Equity Division, Select Bond Division, High Yield Bond Division, Money Market Division, and Balanced Division thereof at December 31, 1995, the results of their operations and the changes in their equity for the year then ended and for each of the other periods presented, all in conformity with generally accepted accounting principles. These financial statements are the responsibility of the Northwestern Mutual Life Insurance Company's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with generally accepted auditing standards which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included direct confirmation of the number of shares owned at December 31, 1995 with Northwestern Mutual Series Fund, Inc. provide a reasonable basis for the opinion expressed above. PRICE WATERHOUSE LLP Milwaukee, Wisconsin January 24, 1996 11 15 ------------- THIS PAGE INTENTIONALLY LEFT BLANK ------------- 12 16 NORTHWESTERN MUTUAL VARIABLE LIFE ACCOUNT STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1995 (IN THOUSANDS) ASSETS Investments at Market Value: Northwestern Mutual Series Fund, Inc. Index 500 Stock 21,188 shares (cost $28,990)....................................................... $ 36,486 Growth Stock 4,799 shares (cost $5,179)......................................................... 6,061 Growth and Income Stock 6,992 shares (cost $7,501)......................................................... 8,467 Aggressive Growth Stock 6,461 shares (cost $13,786)........................................................ 17,885 International Equity 10,696 shares (cost $13,371)....................................................... 14,493 Select Bond 3,873 shares (cost $4,466)......................................................... 4,756 High Yield Bond 2,092 shares (cost $2,159)......................................................... 2,147 Money Market 6,919 shares (cost $6,919)......................................................... 6,919 Balanced 54,660 shares (cost $72,775)....................................................... 87,675 $184,889 -------- Due from Sale of Fund Shares........................................................................ 47 Due from Northwestern Mutual Life Insurance Company................................................. 199 -------- Total Assets............................................................................... $185,135 ======== LIABILITIES Due to Northwestern Mutual Life Insurance Company................................................... $ 47 Due on Purchase of Fund Shares...................................................................... 199 -------- Total Liabilities.......................................................................... 246 -------- EQUITY (Note 8) Policies Issued Before October 11, 1995............................................................. 181,627 Policies Issued On or After October 11, 1995........................................................ 3,262 -------- Total Equity............................................................................... 184,889 -------- Total Liabilities and Equity...................................................................... $185,135 ========
The Accompanying Notes are an Integral Part of the Financial Statements 13 17 NORTHWESTERN MUTUAL LIFE VARIABLE LIFE ACCOUNT STATEMENT OF OPERATIONS AND CHANGES IN EQUITY (IN THOUSANDS)
INDEX 500 COMBINED STOCK DIVISION GROWTH STOCK DIVISION# -------------------- ------------------ ---------------------------- EIGHT MONTHS YEAR ENDED YEAR ENDED YEAR ENDED ENDED DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, -------------------- ------------------ ------------ ------------ 1995 1994 1995 1994 1995 1994 -------- -------- ------- ------- ------------ ------------ INVESTMENT INCOME Dividend Income................................... $ 4,153 $ 2,062 $ 282 $ 611 $ 188 $ 34 Mortality and Expense Risks....................... 736 510 141 103 21 5 Taxes............................................. 314 219 60 44 9 2 -------- -------- ------- ------- ------ ------ Net Investment Income............................. 3,103 1,333 81 464 158 27 -------- -------- ------- ------- ------ ------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Realized Gain on Investments...................... 1,300 14 339 543 16 3 Unrealized Appreciation (Depreciation) of Investments During the Year..................... 30,929 (1,493) 8,323 (907) 906 (25) -------- -------- ------- ------- ------ ------ Net Gain (Loss) on Investments.................... 32,229 (1,479) 8,662 (364) 922 (22) -------- -------- ------- ------- ------ ------ Increase (Decrease) in Equity Derived from Investment Activity............................. 35,332 (146) 8,743 100 1,080 5 -------- -------- ------- ------- ------ ------ EQUITY TRANSACTIONS Policyowners' Net Payments........................ 51,813 38,517 11,096 12,089 2,327 696 Policy Loans, Surrenders, and Death Benefits...... (10,909) (7,695) (2,239) (2,126) (251) (51) Mortality and Other (net)......................... (9,537) (6,812) (2,021) (2,221) (427) (112) Transfers from Other Divisions.................... 12,075 18,069 1,623 941 1,048 1,976 Transfers to Other Divisions...................... (12,075) (18,069) (2,683) (6,161) (186) (44) -------- -------- ------- ------- ------ ------ Increase in Equity Derived from Equity Transactions...................................... 31,367 24,010 5,776 2,522 2,511 2,465 -------- -------- ------- ------- ------ ------ Net Increase in Equity.............................. 66,699 23,864 14,519 2,622 3,591 2,470 Equity Beginning of Year................................. 118,190 94,326 21,967 19,345 2,470 0 -------- -------- ------- ------- ------ ------ End of Year....................................... $184,889 $118,190 $36,486 $21,967 $6,061 $2,470 ======== ======== ======= ======= ====== ======
# The initial investments in the Aggressive Growth Stock, International Equity, Growth Stock and Growth and Income Stock, Divisions were made on May 3, 1994. The Accompanying Notes are an Integral Part of the Financial Statements 14 18 NORTHWESTERN MUTUAL VARIABLE LIFE ACCOUNT STATEMENT OF OPERATIONS AND CHANGES IN EQUITY (IN THOUSANDS)
GROWTH & INCOME AGGRESSIVE GROWTH INTERNATIONAL EQUITY SELECT BOND STOCK DIVISION# STOCK DIVISION# DIVISION# DIVISION ----------------------------- ----------------------------- ----------------------------- ------------ EIGHT MONTHS EIGHT MONTHS EIGHT MONTHS YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, ------------ ------------ ------------ ------------ ------------ ------------ ------------ 1995 1994 1995 1994 1995 1994 1995 ------------ ------------ ------------ ------------ ------------ ------------ ------------ $ 496 $ 62 $ 54 $ 1 $ 67 $ 170 $ 110 30 7 57 12 52 13 20 13 3 24 5 22 6 9 ------ ------ ------- ------ ------- ------ ------ 453 52 (27) (16) (7) 151 81 ------ ------ ------- ------ ------- ------ ------ 25 1 58 11 2 1 13 1,057 (90) 3,798 301 1,389 (267) 596 ------ ------ ------- ------ ------- ------ ------ 1,082 (89) 3,856 312 1,391 (266) 609 ------ ------ ------- ------ ------- ------ ------ 1,535 (37) 3,829 296 1,384 (115) 690 ------ ------ ------- ------ ------- ------ ------ 3,211 1,307 6,744 2,044 6,472 2,308 1,230 (388) (37) (830) (144) (634) (109) (311) (611) (159) (1,184) (316) (1,156) (362) (234) 1,329 2,731 3,476 4,412 2,112 5,376 335 (312) (102) (368) (74) (750) (33) (513) ------ ------ ------- ------ ------- ------ ------ 3,229 3,740 7,838 5,922 6,044 7,180 507 ------ ------ ------- ------ ------- ------ ------ 4,764 3,703 11,667 6,218 7,428 7,065 1,197 3,703 0 6,218 0 7,065 0 3,559 ------ ------ ------- ------ ------- ------ ------ $8,467 $3,703 $ 17,885 $6,218 $ 14,493 $7,065 $4,756 ====== ====== ======= ====== ======= ====== ====== 1994 ------------ $ 195 17 7 ------ 171 ------ 11 (288) ------ (277) ------ (106) ------ 1,286 (250) (229) 322 (896) ------ 233 ------ 127 3,432 ------ $3,559 ======
The Accompanying Notes are an Integral Part of the Financial Statements 15 19 NORTHWESTERN MUTUAL LIFE VARIABLE LIFE ACCOUNT STATEMENT OF OPERATIONS AND CHANGES IN EQUITY (CONTINUED) (IN THOUSANDS)
MONEY MARKET HIGH YIELD BOND DIVISION# DIVISION BALANCED DIVISION ---------------------------- ----------------- ------------------ EIGHT MONTHS YEAR ENDED ENDED YEAR ENDED YEAR ENDED DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, ------------ ------------ ----------------- ------------------ 1995 1994 1995 1994 1995 1994 ------------ ------------ ------- ------ ------- ------- INVESTMENT INCOME Dividend Income................................. $ 183 $ 52 $ 252 $ 127 $ 2,521 $ 810 Mortality and Expense Risks..................... 8 2 22 15 385 336 Taxes........................................... 3 1 9 7 165 144 ------ ---- ------- ------ ------- ------- Net Investment Income........................... 172 49 221 105 1,971 330 ------ ---- ------- ------ ------- ------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Realized Gain (Loss) on Investments............. 8 2 -- -- 839 (558) Unrealized Appreciation (Depreciation) of Investments During the Year................... 29 (41) -- -- 14,831 (176) ------ ---- ------- ------ ------- ------- Net Gain (Loss) on Investments.................. 37 (39) 0 0 15,670 (734) ------ ---- ------- ------ ------- ------- Increase (Decrease) in Equity Derived from Investment Activity........................... 209 10 221 105 17,641 (404) ------ ---- ------- ------ ------- ------- EQUITY TRANSACTIONS Policyowners' Net Payments...................... 761 327 4,335 847 15,637 17,613 Policy Loans, Surrenders, and Death Benefits.... (113) (33) (285) (102) (5,858) (4,843) Mortality and Other (net)....................... (149) (43) (645) (101) (3,110) (3,269) Transfers from Other Divisions.................. 687 746 1,210 1,271 255 294 Transfers to Other Divisions.................... (181) (74) (1,738) (856) (5,344) (9,829) ------ ---- ------- ------ ------- ------- Increase (Decrease) in Equity Derived from Equity Transactions................ 1,005 923 2,877 1,059 1,580 (34) ------ ---- ------- ------ ------- ------- Net Increase (Decrease) in Equity................. 1,214 933 3,098 1,164 19,221 (438) Equity Beginning of Year............................... 933 0 3,821 2,657 68,454 68,892 ------ ---- ------- ------ ------- ------- End of Year..................................... $2,147 $933 $ 6,919 $3,821 $87,675 $68,454 ====== ==== ======= ====== ======= =======
# The initial investment in the High Yield Bond Division was made on May 3, 1994. The Accompanying Notes are an Integral Part of the Financial Statements 16 20 NORTHWESTERN MUTUAL VARIABLE LIFE ACCOUNT NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1995 Note 1 -- Northwestern Mutual Variable Life Account (the "Account") is registered as a unit investment trust under the Investment Company Act of 1940 and is a segregated asset account of The Northwestern Mutual Life Insurance Company ("Northwestern Mutual Life") used to fund variable life insurance policies. Note 2 -- The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Principal accounting policies are summarized below. Note 3 -- All assets of each Division of the Account are invested in shares of the corresponding Portfolio of Northwestern Mutual Series Fund, Inc. (the "Fund"). The shares are valued at the Fund's offering and redemption price per share. The Northwestern Mutual Series Fund, Inc. is a diversified open-end investment company registered under the Investment Company Act of 1940. Note 4 -- Dividend income from the Fund is recorded on the record date of the dividends. Transactions in Fund shares are accounted for on the trade date. The basis for determining cost on sale of Fund shares is identified cost. Purchases and sales of Fund shares for the year ended December 31, 1995 by each Division are shown below:
PURCHASES SALES ---------- ---------- Index 500 Stock Division... $7,647,806 $1,791,915 Growth Stock Division...... 2,801,914 133,145 Growth and Income Stock Division................. 3,878,903 196,027 Aggressive Growth Division................. 8,108,022 297,582 International Equity Division................. 6,376,605 340,068 Select Bond Division....... 1,089,897 502,097 High Yield Bond Division... 1,356,905 180,453 Money Market Division...... 4,225,873 1,129,062 Balanced Division.......... 7,958,842 4,407,732
Note 5 -- A deduction for mortality and expense risks is determined daily and paid to Northwestern Mutual Life. Generally, for policies issued before October 11, 1995, and policies issued on or after October 11, 1995 the deduction is at an annual rate of .50% and .60%, respectively, of the net assets of the Account. The mortality risk is that insureds may not live as long as estimated. The expense risk is that expenses of issuing and administering the policies may exceed the estimated costs. Certain deductions are also made from the annual or single premiums before amounts are allocated to the Account. These deductions are for (1) sales load, (2) administrative expenses, (3) taxes and (4) a risk charge for the guaranteed minimum death benefit. Additional mortality costs are deducted from the policy annually and are paid to Northwestern Mutual Life to cover the cost of providing insurance protection. This cost is actuarially calculated based upon the insured's age, the 1980 Commissioners Standard Ordinary Mortality Table and the amount of insurance provided under the policy. Note 6 -- Northwestern Mutual Life is taxed as a "life insurance company" under the Internal Revenue Code. The variable life insurance policies which are funded in the Account are taxed as part of the operations of Northwestern Mutual Life. Policies provide that a charge for taxes may be made against the assets of the Account. Generally, for policies issued before October 11, 1995, Northwestern Mutual Life charges the Account at an annual rate of .20% of the Account's net assets and reserves the right to increase, decrease or eliminate the charge for taxes in the future. Generally, for policies issued on or after October 11, 1995, there is no charge being made against the assets of the Account for federal income taxes, but Northwestern Mutual Life reserves the right to charge for taxes in the future. Note 7 -- The Account is credited for the policyowners' net annual premiums at the respective policy anniversary dates regardless of when policyowners actually pay their premiums. Northwestern Mutual Life's equity represents any unpaid portion of net annual premiums. 17 21 NORTHWESTERN MUTUAL VARIABLE LIFE ACCOUNT NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1995 (IN THOUSANDS) Note 8 -- Equity Values by Division are shown below:
POLICIES ISSUED BEFORE OCTOBER 11, 1995 EQUITY OF ------------------------- TOTAL POLICYOWNERS NML EQUITY ------------ ------- -------- Index 500 Stock Division........................................ $ 31,239 $ 4,970 $ 36,209 Growth Stock Division........................................... 4,863 1,121 5,984 Growth and Income Stock Division................................ 6,823 1,571 8,394 Aggressive Growth Stock Division................................ 14,420 3,212 17,632 International Equity Division................................... 11,376 3,009 14,385 Select Bond Division............................................ 4,198 534 4,732 High Yield Bond Division........................................ 1,767 368 2,135 Money Market Division........................................... 4,148 363 4,511 Balanced Division............................................... 80,975 6,670 87,645 -------- ------- -------- $159,809 $21,818 $181,627 ======== ======= ========
POLICIES ISSUED ON OR AFTER OCTOBER 11, 1995 EQUITY OF ------------------------- TOTAL POLICYOWNERS NML EQUITY ------------ ------- -------- Index 500 Stock Division........................................ $ 6 $ 270 $ 276 Growth Stock Division........................................... 1 76 77 Growth and Income Stock Division................................ 3 71 74 Aggressive Growth Stock Division................................ 18 235 253 International Equity Division................................... 4 104 108 Select Bond Division............................................ (1) 25 24 High Yield Bond Division........................................ (1) 13 12 Money Market Division........................................... 152 2,256 2,408 Balanced Division............................................... (2) 32 30 -------- ------- -------- $ 180 $ 3,082 $ 3,262 ======== ======= ========
The Accompanying Notes are an Integral Part of the Financial Statements 18 22 Price Waterhouse LLP Letterhead REPORT OF INDEPENDENT ACCOUNTANTS To The Shareholders and Board of Directors of Northwestern Mutual Series Fund, Inc. In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the Index 500 Stock Portfolio, Growth Stock Portfolio, Growth and Income Stock Portfolio, Aggressive Growth Stock Portfolio, International Equity Portfolio, Select Bond Portfolio, High Yield Bond Portfolio, Money Market Portfolio and Balanced Portfolio (constituting Northwestern Mutual Series Fund, Inc., hereafter referred to as the "Fund") at December 31, 1995, the results of each of their operations for the year then ended, the changes in each of their net assets for the year ended December 31, 1995, and for the other periods indicated, and the financial highlights for the year ended December 31, 1995 and the other periods indicated, in conformity with generally accepted accounting principles. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with generally accepted auditing standards which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 1995 by correspondence with the custodian and brokers, provide a reasonable basis for the opinion expressed above. Price Waterhouse LLP Milwaukee, Wisconsin January 26, 1996 19 23 FINANCIAL STATEMENTS OF NORTHWESTERN MUTUAL SERIES FUND, INC. INDEX 500 STOCK PORTFOLIO (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1995 ASSETS Common Stocks (cost $341,451).................. $ 464,866 Money Market Investments (cost $29,316)................... 29,316 Preferred Stock (cost $1)........................ 3 -------- 494,185 Cash................................ 114 Dividends and Interest Receivable... 851 Due from Sale of Fund Shares........ 167 Futures Variation Margin............ 34 -------- Total Assets................... 495,351 -------- LIABILITIES Due on Redemption of Fund Shares.... 113 Due to Investment Advisor........... 84 Accrued Expenses.................... 21 -------- Total Liabilities.............. 218 -------- NET ASSETS............................ $ 495,133 ======== REPRESENTED BY: Aggregate Paid in Capital (500,000 shares authorized, $.01 par value; 287,518 shares outstanding).............. $ 355,506 Undistributed Net Investment Income........................... 6,192 Undistributed Accumulated Net Realized Gain on Investments..... 9,270 Net Unrealized Appreciation of: Investment Securities............ 123,417 Index Futures Contracts.......... 748 -------- Net Assets for 287,518 Shares Outstanding...................... $ 495,133 ======== Net Asset Value, Offering and Redemption Price per Share....... $1.72
STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1995 INVESTMENT INCOME Income Dividends (less foreign dividend tax of $61).................... $ 9,533 Interest......................... 1,330 Other Income..................... 2 -------- Total Income................... 10,865 -------- Expenses Management Fees.................. 804 Custodian Fees................... 55 Other Expenses................... 40 -------- Total Expenses................. 899 -------- Less Custodian Fees Paid by Affiliate................. (55) -------- Total Net Expenses............. 844 -------- Net Investment Income............... 10,021 -------- REALIZED AND UNREALIZED GAIN ON INVESTMENTS Net Realized Gain on Investments: Investment Securities............ 3,843 Index Futures Contracts.......... 5,069 -------- Net Realized Gain on Investments for the Year.... 8,912 -------- Net Change in Unrealized Appreciation of: Investment Securities............ 104,677 Index Futures Contracts.......... 791 -------- Net Change in Unrealized Appreciation of Investments for the Year................ 105,468 -------- Net Gain on Investments............. 114,380 -------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........ $ 124,401 ========
The Accompanying Notes are an Integral Part of the Financial Statements 20 24 NORTHWESTERN MUTUAL SERIES FUND, INC. INDEX 500 STOCK PORTFOLIO STATEMENT OF CHANGES IN NET ASSETS (IN THOUSANDS)
FOR THE YEARS ENDED DECEMBER 31, -------------------- 1995 1994 -------- -------- INCREASE IN NET ASSETS Operations Net Investment Income...................................................... $ 10,021 $ 6,330 Net Realized Gain on Investments........................................... 8,912 2,961 Net Change in Unrealized Appreciation of Investments....................... 105,468 389 -------- -------- Net Increase in Net Assets Resulting from Operations..................... 124,401 9,680 -------- -------- Dividends to Shareholders from: Net Investment Income...................................................... (3,894) (6,269) Net Realized Gain on Investments........................................... -- (2,586) -------- -------- Net Decrease in Net Assets Resulting from Dividends to Shareholders...... (3,894) (8,855) -------- -------- Fund Share Transactions Proceeds from Sale of 47,195 and 19,955 Shares............................. 72,382 25,556 Proceeds from Sale of 220,158 Shares Issued in Acquisition of Northwestern Mutual Index 500 Stock Fund, Inc. ....................................... -- 277,484 Proceeds from Shares Issued on Reinvestment of Dividends Paid (2,593 and 6,966 shares, respectively)................................... 3,894 8,830 Payments for 11,954 and 17,180 Shares Redeemed............................. (17,773) (22,051) -------- -------- Net Increase in Net Assets Resulting from Fund Share Transactions (37,834 and 229,899 shares, respectively)............................. 58,503 289,819 -------- -------- Total Increase in Net Assets.................................................. 179,010 290,644 NET ASSETS Beginning of Year............................................................. 316,123 25,479 -------- -------- End of Year (includes undistributed net investment income of $6,192 and $65, respectively).............................................. $495,133 $316,123 ======== ========
The Accompanying Notes are an Integral Part of the Financial Statements 21 25 NORTHWESTERN MUTUAL SERIES FUND, INC. INDEX 500 STOCK PORTFOLIO FINANCIAL HIGHLIGHTS
FOR THE YEARS ENDED DECEMBER 31, ----------------------------------------------------- 1995 1994 1993 1992 1991 -------- -------- ------- ------- ------- SELECTED PER SHARE DATA Net Asset Value, Beginning of Year................. $ 1.27 $ 1.29 $1.33 $1.31 $1.04 Income from Investment Operations: Net Investment Income......................... 0.04 0.03 0.04 0.03 0.03 Net Realized and Unrealized Gain (Loss) on Investments................................. 0.42 (0.01) 0.09 0.03 0.27 -------- ----- --- ------ --- --- --- --- -- -- -- Total from Investment Operations............ 0.46 0.02 0.13 0.06 0.30 -------- ----- --- ------ --- --- --- --- -- -- -- Less Distributions: Dividends from Net Investment Income.......... (0.01) (0.03) (0.03) (0.03) (0.03) Distributions from Realized Gains on Investments................................. -- (0.01) (0.14) (0.01) -- -------- ----- --- ------ --- --- --- --- -- -- -- Total Distributions......................... (0.01) (0.04) (0.17) (0.04) (0.03) -------- ----- --- ------ --- --- --- --- -- -- -- Net Asset Value, End of Year....................... $ 1.72 $ 1.27 $1.29 $1.33 $1.31 ======== ======== ======== ======== ======== Total Return+...................................... 37.25% 1.21% 9.90% 4.54% 29.78% ======== ======== ======== ======== ======== RATIOS AND SUPPLEMENTAL DATA Net Assets, End of Year (in thousands)............. $495,133 $316,123 $25,479 $17,288 $14,115 ======== ======== ======== ======== ======== Ratio of Expenses to Average Net Assets............ 0.21% 0.24% 0.30% 0.30% 0.30% ======== ======== ======== ======== ======== Ratio of Net Investment Income to Average Net Assets........................................... 2.51% 3.10% 2.55% 2.61% 2.88% ======== ======== ======== ======== ======== Portfolio Turnover Rate............................ 3.19% 5.59% 62.69% 39.93% 40.16% ======== ======== ======== ======== ========
+ Total Return includes deductions for total net expenses; excludes deductions for sales loads and account fees. The Accompanying Notes are an Integral Part of the Financial Statements 22 26 FINANCIAL STATEMENTS OF NORTHWESTERN MUTUAL SERIES FUND, INC. GROWTH STOCK PORTFOLIO (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1995 ASSETS Common Stocks (cost $67,174).................... $80,157 Money Market Investments (cost $5,793)..................... 5,793 ------- 85,950 Cash................................. 40 Due from Sale of Fund Shares......... 146 Dividends and Interest Receivable.... 101 ------- Total Assets.................... 86,237 ------- LIABILITIES Due on Purchase of Securities........ 562 Due on Redemption of Fund Shares..... 57 Due to Investment Advisor............ 40 Accrued Expenses..................... 21 ------- Total Liabilities............... 680 ------- NET ASSETS............................. $85,557 ======= REPRESENTED BY: Aggregate Paid in Capital (400,000 shares authorized, $.01 par value; 67,734 shares outstanding)...................... $71,939 Undistributed Net Investment Income............................ 11 Undistributed Accumulated Net Realized Gain on Investments............... 621 Net Unrealized Appreciation of: Investment Securities............. 12,983 Foreign Currency Transactions..... 3 ------- Net Assets for 67,734 Shares Outstanding....................... $85,557 ======= Net Asset Value, Offering and Redemption Price per Share........ $1.26
STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1995 INVESTMENT INCOME Income Dividends (less foreign dividend tax of $2)...................... $ 1,156 Interest.......................... 339 ------- Total Income.................... 1,495 ------- Expenses Management Fees................... 362 Custodian Fees.................... 22 Other Expenses.................... 24 ------- Total Expenses.................. 408 ------- Less Custodian Fees Paid by Affiliate.................... (22) ------- Total Net Expenses.............. 386 ------- Net Investment Income................ 1,109 ------- REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND FOREIGN CURRENCIES Net Realized Gain on Investments..... 2,321 Net Change in Unrealized Appreciation of: Investment Securities............. 13,075 Foreign Currency Transactions..... 3 ------- Net Change in Unrealized Appreciation of Investments for the Year........................ 13,078 ------- Net Gain on Investments.............. 15,399 ------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............ $16,508 =======
The Accompanying Notes are an Integral Part of the Financial Statements 23 27 NORTHWESTERN MUTUAL SERIES FUND, INC. GROWTH STOCK PORTFOLIO STATEMENT OF CHANGES IN NET ASSETS (IN THOUSANDS)
FOR THE PERIOD FOR THE MAY 3, 1994* YEAR ENDED THROUGH DECEMBER 31, DECEMBER 31, 1995 1994 ------------ ------------ INCREASE IN NET ASSETS Operations Net Investment Income................................................. $ 1,109 $ 518 Net Realized Gain (Loss) on Investments............................... 2,321 (20) Net Change in Unrealized Appreciation (Depreciation) of Investments... 13,078 (92) ------------ ------------ Net Increase in Net Assets Resulting from Operations................ 16,508 406 ------------ ------------ Dividends to Shareholders from: Net Investment Income................................................. (1,105) (511) Net Realized Gain on Investments...................................... (1,582) (98) ------------ ------------ Net Decrease in Net Assets Resulting from Dividends to Shareholders....................................................... (2,687) (609) ------------ ------------ Fund Share Transactions Proceeds from Sale of 24,515 and 41,690 Shares........................ 28,181 41,858 Proceeds from Shares Issued on Reinvestment of Dividends Paid (2,177 and 547 shares, respectively)................................ 2,687 547 Payments for 866 and 329 Shares Redeemed.............................. (1,000) (334) ------------ ------------ Net Increase in Net Assets Resulting from Fund Share Transactions (25,826 and 41,908 shares, respectively)......................... 29,868 42,071 ------------ ------------ Total Increase in Net Assets............................................. 43,689 41,868 NET ASSETS Beginning of Year........................................................ 41,868 0 ------------ ------------ End of Year (includes undistributed net investment income of $11 and $7, respectively)............................................. $ 85,557 $ 41,868 =========== ===========
* Commencement of Operations. The Accompanying Notes are an Integral Part of the Financial Statements 24 28 NORTHWESTERN MUTUAL SERIES FUND, INC. GROWTH STOCK PORTFOLIO FINANCIAL HIGHLIGHTS
FOR THE PERIOD MAY 3, FOR THE 1994* YEAR ENDED THROUGH DECEMBER 31, DECEMBER 31, 1995 1994 ------------ ------------ SELECTED PER SHARE DATA Net Asset Value, Beginning of Year......................................... $ 1.00 $ 1.00 Income from Investment Operations: Net Investment Income................................................. 0.02 0.01 Net Realized and Unrealized Gains on Investments...................... 0.28 -- -------- -------- Total from Investment Operations.................................... 0.30 0.01 -------- -------- Less Distributions: Dividends from Net Investment Income.................................. (0.02) (0.01) Distributions from Realized Gains on Investments...................... (0.02) -- -------- -------- Total Distributions................................................. (0.04) (0.01) -------- -------- Net Asset Value, End of Year............................................... $ 1.26 $ 1.00 ======== ======== Total Return+.............................................................. 30.82% 1.55%++ ======== ======== RATIOS AND SUPPLEMENTAL DATA Net Assets, End of Year (in thousands)..................................... $85,557 $41,868 ======== ======== Ratio of Expenses to Average Net Assets.................................... 0.61% 0.71%** ======== ======== Ratio of Net Investment Income to Average Net Assets....................... 1.77% 2.30%** ======== ======== Portfolio Turnover Rate.................................................... 46.83% 16.51% ======== ========
* Commencement of Operations. ** Computed on an annualized basis. + Total Return includes deductions for total net expenses; excludes deductions for sales loads and account fees. ++ Reflects total return for the period; not annualized. The Accompanying Notes are an Integral Part of the Financial Statements 25 29 FINANCIAL STATEMENTS OF NORTHWESTERN MUTUAL SERIES FUND, INC. GROWTH AND INCOME STOCK PORTFOLIO (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1995 ASSETS Common Stocks (cost $117,315)................... $130,509 Money Market Investments (cost $5,795)..................... 5,795 -------- 136,304 Cash................................. 167 Due from Sale of Securities.......... 310 Dividends and Interest Receivable.... 176 Due from Sale of Fund Shares......... 109 -------- Total Assets.................... 137,066 -------- LIABILITIES Due to Investment Advisor............ 71 Due on Redemption of Fund Shares..... 41 Accrued Expenses..................... 31 -------- Total Liabilities............... 143 -------- NET ASSETS............................. $136,923 ======== REPRESENTED BY: Aggregate Paid in Capital (400,000 shares authorized, $.01 par value; 113,090 shares outstanding)....... $120,323 Undistributed Net Investment Income............................ 17 Undistributed Accumulated Net Realized Gain on Investments...... 3,389 Net Unrealized Appreciation of Investments....................... 13,194 -------- Net Assets for 113,090 Shares Outstanding....................... $136,923 ======== Net Asset Value, Offering and Redemption Price per Share........ $1.21
STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1995 INVESTMENT INCOME Income Dividends (less foreign dividend tax of $14)...................... $ 2,160 Interest........................... 206 ------- Total Income..................... 2,366 ------- Expenses Management Fees.................... 647 Custodian Fees..................... 35 Other Expenses..................... 39 ------- Total Expenses................... 721 ------- Less Custodian Fees Paid by Affiliate................... (35) ------- Total Net Expenses............... 686 ------- Net Investment Income................. 1,680 ------- REALIZED AND UNREALIZED GAIN ON INVESTMENTS Net Realized Gain on Investments...... 9,722 Net Change in Unrealized Appreciation of Investments for the Year........ 14,711 ------- Net Gain on Investments............... 24,433 ------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS....................... $26,113 =======
The Accompanying Notes are an Integral Part of the Financial Statements 26 30 NORTHWESTERN MUTUAL SERIES FUND, INC. GROWTH AND INCOME STOCK PORTFOLIO STATEMENT OF CHANGES IN NET ASSETS (IN THOUSANDS)
FOR THE PERIOD MAY 3, FOR THE 1994* YEAR ENDED THROUGH DECEMBER 31, DECEMBER 31, 1995 1994 ------------ ------------ INCREASE IN NET ASSETS Operations Net Investment Income................................................. $ 1,680 $ 578 Net Realized Gain on Investments...................................... 9,722 632 Net Change in Unrealized Appreciation (Depreciation) of Investments... 14,711 (1,517) -------- ------- Net Increase (Decrease) in Net Assets Resulting from Operations..... 26,113 (307) -------- ------- Dividends to Shareholders from: Net Investment Income................................................. (1,667) (574) Net Realized Gain on Investments...................................... (6,435) (530) -------- ------- Net Decrease in Net Assets Resulting from Dividends to Shareholders....................................................... (8,102) (1,104) -------- ------- Fund Share Transactions Proceeds from Sale of 41,708 and 65,417 Shares........................ 47,441 65,790 Proceeds from Shares Issued on Reinvestment of Dividends Paid (6,769 and 1,060 shares, respectively).............................. 8,102 1,042 Payments for 1,144 and 720 Shares Redeemed............................ (1,331) (721) -------- ------- Net Increase in Net Assets Resulting from Fund Share Transactions (47,333 and 65,757 shares, respectively)......................... 54,212 66,111 -------- ------- Total Increase in Net Assets............................................. 72,223 64,700 -------- ------- NET ASSETS Beginning of Year........................................................ 64,700 0 -------- ------- End of Year (includes undistributed net investment income of $17 and $4, respectively)............................................. $136,923 $ 64,700 ======== =======
* Commencement of Operations. The Accompanying Notes are an Integral Part of the Financial Statements 27 31 NORTHWESTERN MUTUAL SERIES FUND, INC. GROWTH AND INCOME STOCK PORTFOLIO FINANCIAL HIGHLIGHTS
FOR THE PERIOD MAY 3, FOR THE 1994* YEAR ENDED THROUGH DECEMBER 31, DECEMBER 31, 1995 1994 ------------ ------------ SELECTED PER SHARE DATA Net Asset Value, Beginning of Year......................................... $ 0.98 $ 1.00 Income from Investment Operations: Net Investment Income................................................. 0.02 0.01 Net Realized and Unrealized Gain (Loss) on Investments................ 0.29 (0.01) --------- -------- Total from Investment Operations.................................... 0.31 0.00 Less Distributions: Dividends from Net Investment Income.................................. (0.02) (0.01) Distributions from Realized Gains on Investments...................... (0.06) (0.01) --------- -------- Total Distributions................................................. (0.08) (0.02) --------- -------- Net Asset Value, End of Year............................................... $ 1.21 $ 0.98 ========= ======== Total Return+.............................................................. 31.12% 0.34%++ ========= ======== RATIOS AND SUPPLEMENTAL DATA Net Assets, End of Year (in thousands)..................................... $136,923 $ 64,700 ========= ======== Ratio of Expenses to Average Net Assets.................................... 0.69% 0.78%** ========= ======== Ratio of Net Investment Income to Average Net Assets....................... 1.68% 1.93%** ========= ======== Portfolio Turnover Rate.................................................... 80.00% 54.18% ========= ========
* Commencement of Operations. ** Computed on an annualized basis. + Total Return includes deductions for total net expenses; excludes deductions for sales loads and account fees. ++ Reflects total return for the period; not annualized. The Accompanying Notes are an Integral Part of the Financial Statements 28 32 FINANCIAL STATEMENTS OF NORTHWESTERN MUTUAL SERIES FUND, INC. AGGRESSIVE GROWTH STOCK PORTFOLIO (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1995 ASSETS Common Stocks (cost $359,325).................. $ 541,598 Money Market Investments (cost $36,459)................... 36,459 -------- 578,057 Cash................................ 63 Due from Sale of Securities......... 2,045 Due from Sale of Fund Shares........ 123 Dividends and Interest Receivable... 88 -------- Total Assets................... 580,376 -------- LIABILITIES Due on Purchase of Securities....... 2,926 Due on Redemption of Fund Shares.... 146 Due to Investment Advisor........... 256 Accrued Expenses.................... 34 -------- Total Liabilities.............. 3,362 -------- NET ASSETS............................ $ 577,014 ======== REPRESENTED BY: Aggregate Paid in Capital (700,000 shares authorized, $.01 par value; 208,208 shares outstanding)..................... $ 369,183 Undistributed Net Investment Income........................... 572 Undistributed Accumulated Net Realized Gain on Investments..... 24,986 Net Unrealized Appreciation of Investments...................... 182,273 -------- Net Assets for 208,208 Shares Outstanding...................... $ 577,014 ======== Net Asset Value, Offering and Redemption Price per Share....... $2.77
STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1995 INVESTMENT INCOME Income Interest......................... $ 2,246 Dividends (less foreign dividend tax of $4)..................... 817 -------- Total Income................... 3,063 -------- Expenses Management Fees.................. 2,448 Custodian Fees................... 39 Other............................ 43 -------- Total Expenses................. 2,530 -------- Less Custodian Fees Paid by Affiliate................. (39) -------- Total Net Expenses............. 2,491 -------- Net Investment Income............... 572 -------- REALIZED AND UNREALIZED GAIN ON INVESTMENTS Net Realized Gain on Investments.... 24,986 Net Change in Unrealized Appreciation of Investments for the Year......................... 124,412 -------- Net Gain on Investments............. 149,398 -------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........... $ 149,970 ========
The Accompanying Notes are an Integral Part of the Financial Statements 29 33 NORTHWESTERN MUTUAL SERIES FUND, INC. AGGRESSIVE GROWTH STOCK PORTFOLIO STATEMENT OF CHANGES IN NET ASSETS (IN THOUSANDS)
FOR THE PERIOD MAY 3, FOR THE 1994* YEAR ENDED THROUGH DECEMBER 31, DECEMBER 31, 1995 1994 ------------ ------------ INCREASE IN NET ASSETS Operations Net Investment Income................................................. $ 572 $ 566 Net Realized Gain on Investments...................................... 24,986 1,836 Net Change in Unrealized Appreciation of Investments.................. 124,412 12,516 -------- -------- Net Increase in Net Assets Resulting from Operations................ 149,970 14,918 -------- -------- Dividends to Shareholders from: Net Investment Income................................................. (503) (63) Net Realized Gain on Investments...................................... (1,836) 0 -------- -------- Net Decrease in Net Assets Resulting from Dividends to Shareholders....................................................... (2,339) (63) -------- -------- Fund Share Transactions Proceeds from Sale of 50,142 and 36,999 Shares........................ 115,824 70,697 Proceeds from Sale of 128,778 Shares Issued in Acquisition of Northwestern Mutual Aggressive Growth Stock Fund, Inc............... -- 245,687 Proceeds from Shares Issued on Reinvestment of Dividends Paid (1,097 and 35 shares, respectively)................................. 2,339 63 Payments for 6,659 and 2,184 Shares Redeemed.......................... (15,876) (4,206) -------- -------- Net Increase in Net Assets Resulting from Fund Share Transactions (44,580 and 163,628 shares, respectively)........................ 102,287 312,241 -------- -------- Total Increase in Net Assets............................................. 249,918 327,096 NET ASSETS Beginning of Year........................................................ 327,096 0 -------- -------- End of Year (includes undistributed net investment income of $572 and $503, respectively).......................................... $577,014 $327,096 ======== ========
* Commencement of Operations. The Accompanying Notes are an Integral Part of the Financial Statements 30 34 NORTHWESTERN MUTUAL SERIES FUND, INC. AGGRESSIVE GROWTH STOCK PORTFOLIO FINANCIAL HIGHLIGHTS
FOR THE PERIOD MAY 3, FOR THE YEAR 1994* ENDED THROUGH DECEMBER 31, DECEMBER 31, 1995 1994 ------------ ------------ SELECTED PER SHARE DATA Net Asset Value, Beginning of Year......................................... $ 2.00 $ 1.91 Income from Investment Operations: Net Investment Income................................................. -- -- Net Realized and Unrealized Gains on Investments...................... 0.78 0.09 -------- -------- Total from Investment Operations.................................... 0.78 0.09 -------- -------- Less Distributions: Dividends from Net Investment Income.................................. -- -- Distributions from Realized Gains on Investments...................... (0.01) -- -------- -------- Total Distributions................................................. (0.01) -- -------- -------- Net Asset Value, End of Year............................................... $ 2.77 $ 2.00 ======== ======== Total Return+.............................................................. 39.29% 4.47%++ ======== ======== RATIOS AND SUPPLEMENTAL DATA Net Assets, End of Year (in thousands)..................................... $577,014 $327,096 ======== ======== Ratio of Expenses to Average Net Assets.................................... 0.56% 0.58%** ======== ======== Ratio of Net Investment Income to Average Net Assets....................... 0.13% 0.29%** ======== ======== Portfolio Turnover Rate.................................................... 37.84% 21.54% ======== ========
* Commencement of Operations. ** Computed on an annualized basis. + Total Return includes deductions for total net expenses; excludes deductions for sales loads and account fees. ++ Reflects total return for the period; not annualized. The Accompanying Notes are an Integral Part of the Financial Statements 31 35 FINANCIAL STATEMENTS OF NORTHWESTERN MUTUAL SERIES FUND, INC. INTERNATIONAL EQUITY PORTFOLIO (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1995 ASSETS Common Stocks (cost $268,731)................... $295,516 Money Market Investments (cost $33,248).................... 33,212 Bonds (cost $8,215)..................... 8,631 Preferred Stock (cost $754)....................... 822 -------- 338,181 Cash................................. 267 Due from Sale of Securities.......... 3,819 Due from Foreign Currency Contracts......................... 3,731 Dividends and Interest Receivable.... 1,230 -------- Total Assets.................... 347,228 -------- LIABILITIES Due on Foreign Currency Contracts.... 3,740 Due on Purchase of Securities........ 901 Accrued Expenses..................... 225 Due to Investment Advisor............ 194 Due on Redemption of Fund Shares..... 41 -------- Total Liabilities............... 5,101 -------- NET ASSETS............................. $342,127 ======== REPRESENTED BY: Aggregate Paid in Capital (700,000 shares authorized, $.01 par value; 252,496 shares outstanding)....... $295,451 Undistributed Net Investment Income............................ 8,396 Undistributed Accumulated Net Realized Gain on Investments...... 11,201 Net Unrealized Appreciation (Depreciation) of: Investment Securities............. 27,233 Foreign Currency Transactions..... (154) -------- Net Assets for 252,496 Shares Outstanding....................... $342,127 ======== Net Asset Value, Offering and Redemption Price per Share........ $1.35
STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1995 INVESTMENT INCOME Income Dividends (less foreign dividend tax of $1,197)................... $ 8,989 Interest........................... 2,140 ------- Total Income..................... 11,129 ------- Expenses Management Fees.................... 2,151 Custodian Fees..................... 336 Other Expenses..................... 205 ------- Total Expenses................... 2,692 ------- Net Investment Income................. 8,437 ------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCIES Net Realized Gain (Loss) on: Investment Securities.............. 11,653 Foreign Currency Transactions...... (198) ------- Net Realized Gain for the Year... 11,455 Net Change in Unrealized Appreciation (Depreciation) of: Investment Securities.............. 23,057 Foreign Currency Transactions...... (150) ------- Net Change in Unrealized Appreciation of Investments for the Year.................. 22,907 ------- Net Gain on Investments............... 34,362 ------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS....................... $42,799 =======
The Accompanying Notes are an Integral Part of the Financial Statements 32 36 NORTHWESTERN MUTUAL SERIES FUND, INC. INTERNATIONAL EQUITY PORTFOLIO STATEMENT OF CHANGES IN NET ASSETS (IN THOUSANDS)
FOR THE PERIOD MAY 3, FOR THE 1994* YEAR ENDED THROUGH DECEMBER 31, DECEMBER 31, 1995 1994 ------------- ------------- INCREASE IN NET ASSETS Operations Net Investment Income................................................ $ 8,437 $ 4,233 Net Realized Gain on Investments..................................... 11,455 4,575 Net Change in Unrealized Appreciation(Depreciation) of Investments... 22,907 (8,846) -------- -------- Net Increase(Decrease) in Net Assets Resulting from Operations..... 42,799 (38) -------- -------- Dividends to Shareholders from: Net Investment Income................................................ -- (4,907) Net Realized Gain on Investments..................................... (2,171) (2,658) -------- -------- Net Decrease in Net Assets Resulting from Dividends to Shareholders...................................................... (2,171) (7,565) -------- -------- Fund Share Transactions Proceeds from Sale of 28,399 and 73,071 Shares....................... 35,839 90,632 Proceeds from Sale of 193,618 Shares Issued in Acquisition of Northwestern Mutual International Equity Fund, Inc. ............... -- 236,438 Proceeds from Shares Issued on Reinvestment of Dividends Paid (1,740 and 6,300 shares, respectively)............................. 2,171 7,461 Payments for 23,252 and 27,830 Shares Redeemed....................... (29,044) (34,395) -------- -------- Net Increase in Net Assets Resulting from Fund Share Transactions (6,887 and 245,609 shares, respectively)........................ 8,966 300,136 -------- -------- Total Increase in Net Assets.............................................. 49,594 292,533 NET ASSETS Beginning of Year....................................................... 292,533 0 -------- -------- End of Year (includes (over)/undistributed net investment income of $8,396 and ($41), respectively)...................................... $ 342,127 $ 292,533 ======== ========
* Commencement of Operations. The Accompanying Notes are an Integral Part of the Financial Statements 33 37 NORTHWESTERN MUTUAL SERIES FUND, INC. INTERNATIONAL EQUITY PORTFOLIO FINANCIAL HIGHLIGHTS
FOR THE PERIOD MAY 3, FOR THE 1994* YEAR ENDED THROUGH DECEMBER 31, DECEMBER 31, 1995 1994 ------------ ------------ SELECTED PER SHARE DATA Net Asset Value, Beginning of Year......................................... $ 1.19 $ 1.22 Income from Investment Operations: Net Investment Income................................................. 0.04 0.02 Net Realized and Unrealized Gain (Loss) on Investments................ 0.13 (0.02) -------- -------- Total from Investment Operations.................................... 0.17 0.00 -------- -------- Less Distributions: Dividends from Net Investment Income.................................. -- (0.02) Distributions from Realized Gains on Investments...................... (0.01) (0.01) -------- -------- Total Distributions................................................. (0.01) (0.03) -------- -------- Net Asset Value, End of Year............................................... $ 1.35 $ 1.19 ======== ======== Total Return+.............................................................. 14.57% 0.11%++ ======== ======== RATIOS AND SUPPLEMENTAL DATA Net Assets, End of Year (in thousands)..................................... $342,127 $292,533 ======== ======== Ratio of Expenses to Average Net Assets.................................... 0.85% 0.87%** ======== ======== Ratio of Net Investment Income to Average Net Assets....................... 2.68% 2.28%** ======== ======== Portfolio Turnover Rate.................................................... 26.71% 10.97% ======== ========
* Commencement of Operations. ** Computed on an annualized basis. + Total Return includes deductions for total net expenses: excludes deductions for sales loads and account fees. ++ Reflects total return for the period; not annualized. The Accompanying Notes are an Integral Part of the Financial Statements 34 38 FINANCIAL STATEMENTS OF NORTHWESTERN MUTUAL SERIES FUND, INC. SELECT BOND PORTFOLIO (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1995 ASSETS Bonds (cost $154,441).................. $163,192 Money Market Investments (cost $32,102)................... 32,122 -------- 195,314 Cash................................ 221 Interest Receivable................. 2,655 Due from Sale of Fund Shares........ 14 -------- Total Assets................... 198,204 -------- LIABILITIES Due to Investment Advisor........... 50 Due on Redemption of Fund Shares.... 12 -------- Total Liabilities.............. 62 -------- NET ASSETS............................ $198,142 ======== REPRESENTED BY: Aggregate Paid in Capital (400,000 shares authorized, $.01 par value; 161,337 shares outstanding)..................... $183,672 Undistributed Net Investment Income........................... 7,037 Undistributed Accumulated Net Realized Loss on Investments..... (1,338) Net Unrealized Appreciation of Investments...................... 8,771 -------- Net Assets for 161,337 Shares Outstanding...................... $198,142 ======== Net Asset Value, Offering and Redemption Price per Share....... $1.23
STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1995 INVESTMENT INCOME Income Interest.......................... $12,209 ------ Expenses Management Fees................... 529 ------ Net Investment Income................ 11,680 ------ REALIZED AND UNREALIZED GAIN ON INVESTMENTS Net Realized Gain on Investments..... 1,666 Net Change in Unrealized Appreciation of Investments for the Year....... 17,183 ------ Net Gain on Investments.............. 18,849 ------ NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............ $30,529 ======
The Accompanying Notes are an Integral Part of the Financial Statements 35 39 NORTHWESTERN MUTUAL SERIES FUND, INC. SELECT BOND PORTFOLIO STATEMENT OF CHANGES IN NET ASSETS (IN THOUSANDS)
FOR THE YEARS ENDED DECEMBER 31, -------------------- 1995 1994 -------- -------- INCREASE IN NET ASSETS Operations Net Investment Income...................................................... $ 11,680 $ 7,962 Net Realized Gain (Loss) on Investments.................................... 1,666 (3,004) Net Change in Unrealized Appreciation (Depreciation) of Investments........ 17,183 (4,221) -------- -------- Net Increase in Net Assets Resulting from Operations..................... 30,529 737 -------- -------- Dividends to Shareholders from: Net Investment Income...................................................... (4,709) (7,907) Net Realized Gain on Investments........................................... -- (75) -------- -------- Net Decrease in Net Assets Resulting from Dividends to Shareholders...... (4,709) (7,982) -------- -------- Fund Share Transactions Proceeds from Sale of 20,151 and 7,274 Shares.............................. 23,377 8,071 Proceeds from Sale of 148,197 Shares Issued in Acquisition of Northwestern Mutual Select Bond Fund, Inc................................ -- 163,901 Proceeds from Shares Issued on Reinvestment of Dividends Paid (4,071 and 7,517 shares, respectively)................................... 4,709 7,982 Payments for 12,511 and 28,622 Shares Redeemed............................. (14,272) (31,686) -------- -------- Net Increase in Net Assets Resulting from Fund Share Transactions (11,711 and 134,366 shares, respectively)............................. 13,814 148,268 -------- -------- Total Increase in Net Assets.................................................. 39,634 141,023 NET ASSETS Beginning of Year............................................................. 158,508 17,485 -------- -------- End of Year (includes undistributed net investment income of $7,037 and $66, respectively).............................................. $198,142 $158,508 ======== ========
The Accompanying Notes are an Integral Part of the Financial Statements 36 40 NORTHWESTERN MUTUAL SERIES FUND, INC. SELECT BOND PORTFOLIO FINANCIAL HIGHLIGHTS
FOR THE YEARS ENDED DECEMBER 31, -------------------------------------------------------- 1995 1994 1993 1992 1991 -------- -------- -------- -------- -------- SELECTED PER SHARE DATA Net Asset Value, Beginning of Year....................... $ 1.06 $ 1.15 $ 1.14 $ 1.18 $ 1.09 Income from Investment Operations: Net Investment Income............................... 0.07 0.06 0.08 0.09 0.09 Net Realized and Unrealized Gain (Loss) on Investments....................................... 0.13 (0.09) 0.05 -- 0.09 -------- ----- --- ----- --- ----- --- ----- --- Total from Investment Operations.................. 0.20 (0.03) 0.13 0.09 0.18 -------- ----- --- ----- --- ----- --- ----- --- Less Distributions: Dividends from Net Investment Income................ (0.03) (0.06) (0.08) (0.09) (0.09) Distributions from Realized Gain on Investments..... -- -- (0.04) (0.04) -- -------- ----- --- ----- --- ----- --- ----- --- Total Distributions............................... (0.03) (0.06) (0.12) (0.13) (0.09) -------- ----- --- ----- --- ----- --- ----- --- Net Asset Value, End of Year............................. $ 1.23 $ 1.06 $ 1.15 $ 1.14 $ 1.18 ======== ======== ======== ======== ======== Total Return+............................................ 19.10% (2.28%) 10.81% 7.74% 17.32% ======== ======== ======== ======== ======== RATIOS AND SUPPLEMENTAL DATA Net Assets, End of Year (in thousands)................... $198,142 $158,508 $17,485 $15,851 $14,703 ======== ======== ======== ======== ======== Ratio of Expenses to Average Net Assets.................. 0.30% 0.30% 0.30% 0.30% 0.30% ======== ======== ======== ======== ======== Ratio of Net Investment Income to Average Net Assets..... 6.61% 7.02% 6.40% 7.52% 8.11% ======== ======== ======== ======== ======== Portfolio Turnover Rate.................................. 69.06% 108.00% 67.69% 63.29% 60.88% ======== ======== ======== ======== ========
+ Total Return includes deductions for management expenses; excludes deductions for sales load and account fees. The Accompanying Notes are an Integral Part of the Financial Statements 37 41 FINANCIAL STATEMENTS OF NORTHWESTERN MUTUAL SERIES FUND, INC. HIGH YIELD BOND PORTFOLIO (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1995 ASSETS Bonds (cost $52,957).................... $52,950 Money Market Investments (cost $1,199)..................... 1,199 Preferred Stock (cost $500)....................... 630 Common Stock (cost $29)........................ 140 ------- 54,919 Dividends and Interest Receivable.... 1,164 Due From Sale of Fund Shares......... 10 ------- Total Assets.................... 56,093 ------- LIABILITIES Due to Custodian..................... 43 Due to Investment Advisor............ 28 Due on Redemption of Fund Shares..... 26 Accrued Expenses..................... 22 ------- Total Liabilities............... 119 ------- NET ASSETS............................. $55,974 ======= REPRESENTED BY: Aggregate Paid in Capital (400,000 shares authorized, $.01 par value; 54,536 shares outstanding)...................... $55,455 Overdistributed Net Investment Income............................ (38) Undistributed Accumulated Net Realized Gain on Investments...... 323 Net Unrealized Appreciation of Investments....................... 234 ------- Net Assets for 54,536 Shares Outstanding....................... $55,974 ======= Net Asset Value, Offering and Redemption Price per Share........ $1.03
STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1995 INVESTMENT INCOME Income Interest........................... $4,794 Other Income....................... 51 ------ Total Income..................... 4,845 ------ Expenses Management Fees.................... 275 Custodian Fees..................... 17 Other Expenses..................... 22 ------ Total Expenses................... 314 ------ Less Custodian Fees Paid by Affiliate................... (17) ------ Total Net Expenses............... 297 ------ Net Investment Income................. 4,548 ------ REALIZED AND UNREALIZED GAIN ON INVESTMENTS Net Realized Gain on Investments...... 970 Net Change in Unrealized Appreciation of Investments for the Year........ 1,206 ------ Net Gain on Investments............... 2,176 ------ NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............. $6,724 ======
The Accompanying Notes are an Integral Part of the Financial Statements 38 42 NORTHWESTERN MUTUAL SERIES FUND, INC. HIGH YIELD BOND PORTFOLIO STATEMENT OF CHANGES IN NET ASSETS (IN THOUSANDS)
FOR THE PERIOD MAY 3, FOR THE 1994* YEAR ENDED THROUGH DECEMBER 31, DECEMBER 31, 1995 1994 ------------ ------------ INCREASE IN NET ASSETS Operations Net Investment Income...................................................... $ 4,548 $ 1,937 Net Realized Gain (Loss) on Investments.................................... 970 (86) Net Change in Unrealized Appreciation (Depreciation) of Investments........ 1,206 (972) ------- ------- Net Increase in Net Assets Resulting from Operations..................... 6,724 879 ------- ------- Dividends to Shareholders from: Net Investment Income...................................................... (4,604) (1,919) Net Realized Gain on Investments........................................... (465) (96) ------- ------- Net Decrease in Net Assets Resulting from Dividends to Shareholders...... (5,069) (2,015) ------- ------- Fund Share Transactions Proceeds from Sale of 14,751 and 35,400 Shares............................. 15,535 35,565 Proceeds from Shares Issued on Reinvestment of Dividends Paid (4,919 and 2,004 shares, respectively)................................... 5,069 1,941 Payments for 1,724 and 814 Shares Redeemed................................. (1,822) (833) ------- ------- Net Increase in Net Assets Resulting from Fund Share Transactions (17,946 and 36,590 shares, respectively).............................. 18,782 36,673 ------- ------- Total Increase in Net Assets.................................................. 20,437 35,537 NET ASSETS Beginning of Year............................................................. 35,537 0 ------- ------- End of Year (includes (over)/undistributed net investment income of ($38) and $18, respectively)............................................... $ 55,974 $ 35,537 ======= =======
* Commencement of Operations. The Accompanying Notes are an Integral Part of the Financial Statements 39 43 NORTHWESTERN MUTUAL SERIES FUND, INC. HIGH YIELD BOND PORTFOLIO FINANCIAL HIGHLIGHTS
FOR THE PERIOD MAY 3, FOR THE 1994* YEAR ENDED THROUGH DECEMBER 31, DECEMBER 31, 1995 1994 ------------ ------------ SELECTED PER SHARE DATA Net Asset Value, Beginning of Year............................................ $ 0.97 $ 1.00 Income from Investment Operations: Net Investment Income.................................................... 0.10 0.06 Net Realized and Unrealized Gain (Loss) on Investments................... 0.07 (0.03) -------- -------- Total from Investment Operations....................................... 0.17 0.03 -------- -------- Less Distributions: Dividends from Net Investment Income..................................... (0.10) (0.06) Distributions from Realized Gains on Investments......................... (0.01) -- -------- -------- Total Distributions.................................................... (0.11) (0.06) -------- -------- Net Asset Value, End of Year.................................................. $ 1.03 $ 0.97 ======== ======== Total Return+................................................................. 16.78% 3.02%++ ======== ======== RATIOS AND SUPPLEMENTAL DATA Net Assets, End of Year (in thousands)........................................ $ 55,974 $ 35,537 ======== ======== Ratio of Expenses to Average Net Assets....................................... 0.65% 0.73% ** ======== ======== Ratio of Net Investment Income to Average Net Assets.......................... 9.90% 9.40% ** ======== ======== Portfolio Turnover Rate....................................................... 116.57% 119.48% ======== ========
* Commencement of Operations. ** Computed on an annualized basis. + Total Return includes deductions for total net expenses; excludes deductions for sales loads and account fees. ++ Reflects total return for the period; not annualized. The Accompanying Notes are an Integral Part of the Financial Statements 40 44 FINANCIAL STATEMENTS OF NORTHWESTERN MUTUAL SERIES FUND, INC. MONEY MARKET PORTFOLIO (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1995 ASSETS Money Market Investments (cost $131,681)................... $131,681 Cash................................. 84 Due from Sale of Fund Shares......... 717 Interest Receivable.................. 123 -------- Total Assets.................... 132,605 -------- LIABILITIES Due to Investment Advisor............ 33 -------- NET ASSETS............................. $132,572 ======== REPRESENTED BY: Aggregate Paid in Capital (300,000 shares authorized, $.01 par value; 132,588 shares outstanding)....... $132,572 -------- Net Assets for 132,588 Shares Outstanding....................... $132,572 ======== Net Asset Value, Offering and Redemption Price per Share........ $1.00
STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1995 INVESTMENT INCOME Income Interest............................ $6,668 ------ Expenses Management Fees..................... 335 ------ Net Investment Income.................. 6,333 ------ NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............................. $6,333 ======
The Accompanying Notes are an Integral Part of the Financial Statements 41 45 NORTHWESTERN MUTUAL SERIES FUND, INC. MONEY MARKET PORTFOLIO STATEMENT OF CHANGES IN NET ASSETS (IN THOUSANDS)
FOR THE YEARS ENDED DECEMBER 31, ---------------------------- 1995 1994 ------------ ------------ INCREASE IN NET ASSETS Operations Net Investment Income................................................. $ 6,333 $ 3,291 -------- -------- Net Increase in Net Assets Resulting from Operations................ 6,333 3,291 -------- -------- Dividends to Shareholders from: Net Investment Income................................................. (6,333) (3,307) -------- -------- Net Decrease in Net Assets Resulting from Dividends to Shareholders....................................................... (6,333) (3,307) -------- -------- Fund Share Transactions Proceeds from Sale of 74,140 and 40,032 Shares........................ 74,140 40,032 Proceeds from Sale of 91,310 Shares Issued in Acquisition of Northwestern Mutual Money Market Fund, Inc. ......................... -- 91,310 Proceeds from Shares Issued on Reinvestment of Dividend Paid (6,333 and 2,938 shares, respectively).............................. 6,333 2,938 Payments for 52,118 and 42,704 Shares Redeemed........................ (52,118) (42,704) -------- -------- Net Increase in Net Assets Resulting from Fund Share Transactions (28,355 and 91,576 shares, respectively)......................... 28,355 91,576 -------- -------- Total Increase in Net Assets............................................. 28,355 91,560 NET ASSETS Beginning of Year........................................................ 104,217 12,657 -------- -------- End of Year (includes no undistributed net investment income)............ $132,572 $104,217 ======== ========
The Accompanying Notes are an Integral Part of the Financial Statements 42 46 NORTHWESTERN MUTUAL SERIES FUND, INC. MONEY MARKET PORTFOLIO FINANCIAL HIGHLIGHTS
FOR THE YEARS ENDED DECEMBER 31, -------------------------------------------------------- 1995 1994 1993 1992 1991 -------- -------- -------- -------- -------- SELECTED PER SHARE DATA Net Asset Value, Beginning of Year............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Net Investment Income..................... 0.06 0.05 0.03 0.03 0.06 Less Dividends from Net Investment Income.................................... (0.06) (0.05) (0.03) (0.03) (0.06) -------- ----- --- ----- --- ----- --- ----- --- Net Asset Value, End of Year................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======== ======== ======== ======== ======== Total Return+.................................. 5.82% 4.03% 2.88% 3.49% 5.85% ======== ======== ======== ======== ======== RATIOS AND SUPPLEMENTAL DATA Net Assets, End of Year (in thousands)............................... $132,572 $104,217 $12,657 $14,091 $12,787 ======== ======== ======== ======== ======== Ratio of Expenses to Average Net Assets....................................... 0.30% 0.30% 0.30% 0.30% 0.30% ======== ======== ======== ======== ======== Ratio of Net Investment Income to Average Net Assets........................... 5.61% 4.64% 2.87% 3.40% 5.71% ======== ======== ======== ======== ========
+ Total Return includes deductions for management expenses; excludes deductions for sales loads and account fees. The Accompanying Notes are an Integral Part of the Financial Statements 43 47 FINANCIAL STATEMENTS OF NORTHWESTERN MUTUAL SERIES FUND, INC. BALANCED PORTFOLIO (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1995 ASSETS Common Stock (cost $754,329)................ $1,051,375 Bonds (cost $658,689)................ 693,161 Money Market Investments (cost $325,478)................ 326,078 Preferred Stock (cost $1)...................... 7 ---------- 2,070,621 Cash.............................. 291 Dividends and Interest Receivable..................... 13,848 Due from Sale of Fund Shares...... 107 Futures Variation Margin.......... 86 ---------- Total Assets................. 2,084,953 ---------- LIABILITIES Due on Redemption of Fund Shares......................... 1,137 Due to Investment Advisor......... 527 ---------- Total Liabilities............ 1,664 ---------- NET ASSETS.......................... $2,083,289 ========== REPRESENTED BY: Aggregate Paid in Capital (2,000,000 shares authorized, $.01 par value; 1,298,518 shares outstanding)............ $1,630,252 Undistributed Net Investment Income......................... 83,551 Undistributed Accumulated Net Realized Gain on Investments... 38,620 Net Unrealized Appreciation (Depreciation) of: Investment Securities.......... 332,124 Index Futures Contracts........ (1,258) ---------- Net Assets for 1,298,518 Shares Outstanding.................... $2,083,289 ========== Net Asset Value, Offering and Redemption Price per Share..... $1.60
STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1995 INVESTMENT INCOME Income Dividends (less foreign dividend tax of $153)................... $ 23,254 Interest......................... 65,981 Other Income..................... 7 -------- Total Income................... 89,242 -------- Expenses Management Fees.................. 5,696 -------- Net Investment Income............... 83,546 -------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net Realized Gain on Investments: Investment Securities............ 22,299 Index Futures Contracts.......... 19,219 -------- Net Realized Gain on Investments for the Year................ 41,518 -------- Net Change In Unrealized Appreciation (Depreciation) of: Investment Securities............ 320,376 Index Futures Contracts.......... (2,330) -------- Net Change in Unrealized Appreciation of Investments for the Year................ 318,046 -------- Net Gain on Investments............. 359,564 -------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........... $443,110 ========
The Accompanying Notes are an Integral Part of the Financial Statements 44 48 NORTHWESTERN MUTUAL SERIES FUND, INC. BALANCED PORTFOLIO STATEMENT OF CHANGES IN NET ASSETS (IN THOUSANDS)
FOR THE YEARS ENDED DECEMBER 31, ------------------------ 1995 1994 ---------- ---------- INCREASE IN NET ASSETS Operations Net Investment Income.................................................. $ 83,546 $ 53,165 Net Realized Gain on Investments....................................... 41,518 5,281 Net Change in Unrealized Appreciation (Depreciation) of Investments.... 318,046 (17,767) --------- --------- Net Increase in Net Assets Resulting from Operations................. 443,110 40,679 --------- --------- Dividends to Shareholders from: Net Investment Income.................................................. (53,160) (28) Net Realized Gain on Investments....................................... (8,179) (782) --------- --------- Net Decrease in Net Assets Resulting from Dividends to Shareholders........................................................ (61,339) (810) Fund Share Transactions Proceeds from Sale of 35,282 and 21,149 Shares......................... 51,862 27,441 Proceeds from Sale of 1,330,565 Shares Issued in Acquisition of Northwestern Mutual Balanced Fund, Inc. .............................. -- 1,705,466 Proceeds from Shares Issued on Reinvestment of Dividends Paid (44,352 and 607 shares, respectively)................................ 61,339 810 Payments for 96,890 and 88,502 Shares Redeemed......................... (138,810) (115,369) --------- --------- Net Increase (Decrease) in Net Assets Resulting from Fund Share Transactions ((17,256) and 1,263,819 shares, respectively).......... (25,609) 1,618,348 --------- --------- Total Increase in Net Assets.............................................. 356,162 1,658,217 NET ASSETS Beginning of Year......................................................... 1,727,127 68,910 --------- --------- End of Year (includes undistributed net investment income of $83,551 and $53,165 respectively)...................................... $2,083,289 $1,727,127 ========= =========
The Accompanying Notes are an Integral Part of the Financial Statements 45 49 NORTHWESTERN MUTUAL SERIES FUND, INC. BALANCED PORTFOLIO FINANCIAL HIGHLIGHTS
FOR THE YEARS ENDED DECEMBER 31, ------------------------------------------------------------ 1995 1994 1993 1992 1991 ---------- ---------- -------- -------- -------- SELECTED PER SHARE DATA Net Asset Value, Beginning of Year........... $ 1.31 $ 1.33 $ 1.39 $ 1.40 $ 1.19 Income from Investment Operations: Net Investment Income................... 0.07 0.04 0.06 0.06 0.07 Net Realized and Unrealized Gain (Loss) on Investments............ 0.27 (0.05) 0.09 0.01 0.21 ---------- ------- --- ----- --- ----- --- ----- --- Total from Investment Operations......................... 0.34 (0.01) 0.15 0.07 0.28 ---------- ------- --- ----- --- ----- --- ----- --- Less Distributions: Dividends from Net Investment Income................................ (0.04) (0.00) (0.07) (0.06) (0.07) Distributions from Realized Gain on Investments........................ (0.01) (0.01) (0.14) (0.02) -- ---------- ------- --- ----- --- ----- --- ----- --- Total Distributions................... (0.05) (0.01) (0.21) (0.08) (0.07) ---------- ------- --- ----- --- ----- --- ----- --- Net Asset Value, End of Year................. $ 1.60 $ 1.31 $ 1.33 $ 1.39 $ 1.40 ========== ========== ======== ======== ======== Total Return+................................ 26.39% 0.16% 9.91% 5.61% 23.33% ========== ========== ======== ======== ======== RATIOS AND SUPPLEMENTAL DATA Net Assets, End of Year (in thousands)............................. $2,083,289 $1,727,127 $68,910 $66,006 $57,269 ========== ========== ======== ======== ======== Ratio of Expenses to Average Net Assets..................................... 0.30% 0.30% 0.30% 0.30% 0.30% ========== ========== ======== ======== ======== Ratio of Net Investment Income to Average Net Assets......................... 4.40% 4.78% 4.24% 4.45% 5.11% ========== ========== ======== ======== ======== Portfolio Turnover Rate...................... 37.28% 42.35% 70.91% 43.28% 55.46% ========== ========== ======== ======== ========
+ Total Return includes deductions for management expenses; excludes deductions for sales loads and account fees. The Accompanying Notes are an Integral Part of the Financial Statements 46 50 NORTHWESTERN MUTUAL SERIES FUND, INC. NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1995 Note 1 -- Northwestern Mutual Series Fund, Inc. (the "Series Fund"), formerly Northwestern Mutual Variable Life Series Fund, Inc., is registered as a diversified open-end investment company under the Investment Company Act of 1940. The Series Fund consists of the Index 500 Stock Portfolio, Growth Stock Portfolio, Growth and Income Stock Portfolio, Aggressive Growth Stock Portfolio, International Equity Portfolio, Select Bond Portfolio, High Yield Bond Portfolio, Money Market Portfolio, and the Balanced Portfolio (the "Portfolios"). Shares are presently offered only to The Northwestern Mutual Life Insurance Company ("Northwestern Mutual Life") and its segregated asset accounts. On May 3, 1994, five new portfolios commenced operations in the Series Fund: Growth Stock Portfolio, Growth and Income Stock Portfolio, Aggressive Growth Stock Portfolio, International Equity Portfolio and High Yield Bond Portfolio. These five portfolios were organized with 700,000,000 authorized shares of Common Stock for each of the Aggressive Growth Stock and International Equity Portfolios and 400,000,000 authorized shares of Common Stock for each of the Growth Stock, Growth and Income Stock and High Yield Bond Portfolios. Par Value is $.01 per share. Northwestern Mutual Life purchased 25,000,000 shares each of the Growth Stock, Growth and Income Stock and High Yield Bond Portfolios at $1.00 per share. Note 2 -- The assets of Northwestern Mutual Life's variable annuity funds were merged into the Series Fund in a tax-free exchange of fund shares on May 3, 1994. The following summarizes the merge:
# OF SHARES/ UNREALIZED APPRECIATION MERGE FROM: VALUE REDEEMED (DEPRECIATION) TRANSFERRED - -------------------------------------------------------------- -------------- -------------------------- Northwestern Mutual Index 500 Stock Fund, Inc. ............... 199,137,846 $ 277,484,077 $ 16,828,536 Northwestern Mutual Aggressive Growth Stock Fund, Inc. ....... 128,778,039 $ 245,687,070 $ 45,345,398 Northwestern Mutual International Equity Fund, Inc............ 193,618,391 $ 236,437,711 $ 13,017,843 Northwestern Mutual Select Bond Fund, Inc. ................... 127,156,919 $ 163,901,422 $ (4,867,983) Northwestern Mutual Money Market Fund, Inc. .................. 91,309,664 $ 91,309,664 -- Northwestern Mutual Balanced Fund, Inc........................ 1,250,574,720 $1,705,465,964 $ 27,288,995
# OF SHARES/ AGGREGATE NET ASSETS MERGED TO: VALUE RECEIVED OF PORTFOLIO AFTER MERGER - -------------------------------------------------------------- -------------- ------------------------- Northwestern Mutual Series Fund, Inc. -- Index 500 Stock Portfolio................................ 220,157,952 $ 277,484,077 $ 305,458,525 -- Aggressive Growth Stock Portfolio........................ 128,778,039 $ 245,687,070 $ 245,687,070 -- International Equity Portfolio........................... 193,618,391 $ 236,437,711 $ 236,437,711 -- Select Bond Portfolio.................................... 148,196,445 $ 163,901,422 $ 181,055,470 -- Money Market Portfolio................................... 91,309,664 $ 91,309,664 $ 104,436,452 -- Balanced Portfolio....................................... 1,330,564,679 $1,705,465,964 $ 1,776,058,467
The Aggressive Growth Stock and International Equity Portfolios had no assets prior to the merger so the assets of the Funds became the assets of the Portfolios. Hence, these Portfolios commenced operations in the Series Fund on May 3, 1994 at $1.91 and $1.22, respectively. Note 3 -- The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities 47 51 NORTHWESTERN MUTUAL SERIES FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1995 and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Principal accounting policies are summarized below. Note 4 -- Bonds are valued on the basis of prices furnished by a service which determines prices for normal institutional size trading units of bonds, without regard to exchange or over-the-counter prices. When quotations are not readily available, bonds are valued at fair market value determined by procedures approved by the Board of Directors. Stocks listed on a national or foreign stock exchange are valued at the final sale price, or final bid price in absence of a sale. Stocks not listed on a national or foreign stock exchange are valued at the closing bid price on the over-the-counter market. Money market investments, other than in the Money Market Portfolio, with maturities exceeding sixty days but generally not exceeding one year are valued by marking to market on the basis of an average of the most recent bid prices or yields. Money market investments with maturities of sixty days or less and all securities in the Money Market Portfolio are valued on an amortized cost basis or, if the current market value differs substantially from the amortized cost, by marking to market. Note 5 -- Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of securities and income items denominated in foreign currencies are translated in U.S. dollar amounts on the respective dates of such transactions. When the International Equity Portfolio purchases or sells a foreign security it may enter into a foreign exchange currency contract to minimize market risk from the trade date to the settlement date of such transaction. Such foreign exchange currency contracts are marked to market daily. The International Equity Portfolio does not separately report the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments. Net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade date and settlement date on security transactions, the differences between the amounts of dividends and foreign withholding taxes recorded on the portfolio's books, and the U.S. dollar equivalent of the amounts actually received or paid. Note 6 -- The Index 500 Stock and Balanced Portfolios invest in futures contracts as an alternative to investing in individual securities. The Index 500 Stock and Balanced Portfolios could be exposed to market risk due to changes in the value of the underlying securities or due to an illiquid secondary market. Futures contracts are marked to market daily based upon quoted settlement prices. The Portfolios receive from or pay to brokers an amount of cash equal to the daily fluctuation in the value of the contracts. Such receipts or payments are known as "variation margin" and are recorded by the Portfolios as unrealized gains or losses. When the contract is closed, the Portfolios record a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Note 7 -- Interest income and discounts earned are recorded daily on the accrual basis and dividend income is recorded on the ex-dividend date or as soon as information from foreign issuers is available. Where applicable, dividends are recorded net of foreign dividend tax. Discounts and premiums on securities purchased are amortized over the life of the respective securities when required for federal income tax purposes. Securities transactions are accounted for on the day following the trade date except for money market investments which are accounted for on the trade date. The basis for determining cost on sale of securities is identified cost. For the year ended December 31, 1995, transactions in securities other than money market investments were:
YEAR ENDED DECEMBER 31, 1995 -------------------------------------------------------------------- TOTAL U.S. GOVT TOTAL U.S. GOVT SECURITY SECURITY SECURITY SECURITY PORTFOLIOS PURCHASES PURCHASES SALES/MATURITIES SALES/MATURITIES - ------------------------------------------ ------------ ------------ ---------------- ---------------- Index 500 Stock........................... $ 59,878,287 $ 0 $ 12,044,408 $ 0 Growth Stock.............................. 54,517,879 0 26,767,578 0 Growth and Income Stock................... 121,075,856 0 77,346,645 0 Aggressive Growth Stock................... 260,690,662 0 154,803,016 0 International Equity...................... 89,477,772 2,897,648 75,620,620 0 Select Bond............................... 109,814,276 65,552,594 107,754,401 69,226,521 High Yield Bond........................... 68,073,739 0 50,808,496 0 Balanced.................................. 714,367,753 436,056,565 588,378,994 358,907,270
48 52 NORTHWESTERN MUTUAL SERIES FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1995 Note 8 -- The Series Fund and its Portfolios are parties to annually renewable contracts pursuant to which each Portfolio pays a charge for investment management and administrative services. Each Portfolio pays a monthly fee for these investment advisory services at an annual rate based on the average daily net asset values of each Portfolio. For the Index 500 Stock Portfolio the rate is .20%, and for the Select Bond, Money Market and Balanced Portfolios the rate is .30%. For the other Portfolios the rate for the investment advisory fee is graded by the asset size of the Portfolio according to the following schedule:
PORTFOLIO FIRST $50 MILLION NEXT $50 MILLION EXCESS - ---------------------------------------------------------------- ----------------- ---------------- ------ Growth Stock.................................................... .60% .50% .40% Growth and Income Stock......................................... .70% .60% .55% Aggressive Growth Stock......................................... .80% .65% .50% International Equity............................................ .85% .65% .65% High Yield Bond................................................. .60% .50% .40%
These amounts are paid to Northwestern Mutual Investment Services, Inc. ("NMIS") a wholly-owned subsidiary of Northwestern Mutual Life, which is the manager and investment adviser of the Fund. Northwestern Mutual Life is also a party to the agreement. Other costs for each Portfolio are paid either by the Portfolios, Northwestern Mutual Life, or NMIS depending upon the applicable agreement in place. J.P. Morgan Investment Management, Inc. ("J.P. Morgan") and Templeton Investment Counsel, Inc. ("Templeton Counsel") have been retained under an investment sub-advisory agreement to provide investment advice and, in general, to conduct the management investment program of the Growth and Income Stock Portfolio and the International Equity Portfolio, respectively. Of the advisory fees received by NMIS from the Growth and Income Stock Portfolio, .45% on the first $100 million of the Portfolio's net assets, .40% on the next $100 million, .35% on the next $200 million and .30% on the net assets in excess of $400 million will be paid by NMIS to J.P. Morgan. Of the advisory fees received by NMIS from the International Equity Portfolio, .50% on the first $100 million of the Portfolio's net assets and .40% on net assets in excess of $100 million will be paid by NMIS to Templeton Counsel. Note 9 -- The Series Fund has elected to be taxed as a regulated investment company meeting certain requirements under the Internal Revenue Code. Since it expects to distribute all net investment income and net realized capital gains, the Series Fund anticipates incurring no federal income taxes. A net realized capital loss of $1,337,853 in the Select Bond Portfolio carried forward from 1994 and is available to offset future net realized capital gains. The amount expires in 2002. A capital loss carryforward of $366,657 was utilized in the Select Bond Portfolio during the year ended December 31, 1995. As of December 31, 1995, the federal income tax basis of investments is the same as the cost basis in the financial statements except for the International Equity Portfolio. The federal income tax basis of investments was $312,572,728 for the International Equity Portfolio. The net unrealized appreciation (depreciation) and the gross unrealized appreciation (depreciation) for federal income tax purposes are shown below:
(IN THOUSANDS) GROWTH AND GROWTH INCOME AGGRESSIVE INDEX 500 STOCK STOCK GROWTH STOCK STOCK PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO --------------- --------- ---------- ------------ Gross unrealized appreciation......................... $ 131,032 $ 13,742 $ 16,575 $186,905 Gross unrealized depreciation......................... (7,615) (759) (3,381) (4,632) --------- -------- -------- -------- Net unrealized appreciation........................... $ 123,417 $ 12,983 $ 13,194 $182,273 ========= ======== ======== ========
INTERNATIONAL HIGH YIELD EQUITY SELECT BOND BOND BALANCED PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO ------------- ----------- ---------- -------- Gross unrealized appreciation............................ $ 42,706 $ 8,819 $ 2,058 $355,306 Gross unrealized depreciation............................ (17,098) (48) (1,824) (23,182) --------- ------- ------- -------- Net unrealized appreciation.............................. $ 25,608 $ 8,771 $ 234 $332,124 ========= ======= ======= ========
49 53 NORTHWESTERN MUTUAL SERIES FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1995 Taxable distributions from net investment income and realized capital gains in the International Equity Portfolio differ from book amounts earned during the period due to differences in the timing of capital recognition and due to the reclassification of certain gains or losses from capital to income. For Federal income tax purposes, net unrealized appreciation (depreciation) of $748,075 and ($1,257,850) on open futures contracts for the Index 500 Stock and Balanced Portfolios, respectively, is required to be treated as realized gains and losses. Note 10 -- The costs associated with organizing the five new Portfolios and certain other initial period costs have been incurred by Northwestern Mutual Life. The Series Fund is not obligated to repay these costs. Note 11 -- Dividends from net investment income and net realized capital gains are declared each year for the Index 500 Stock, Growth Stock, Growth and Income Stock, Aggressive Growth Stock, International Equity, Select Bond, High Yield Bond and Balanced Portfolios and each business day for the Money Market Portfolio. Dividend distributions are described below. A dividend was declared on May 2, 1995, payable to shareholders of record on May 2, 1995. Dividends paid from 1994 net investment income and 1994 net capital gains were as follows:
NET INVESTMENT NET PORTFOLIOS INCOME CAPITAL GAINS - --------------------------------------------------------------------------- ----------- ------------- Index 500 Stock............................................................ $ 64,846 -- Growth Stock............................................................... 6,489 -- Growth and Income Stock.................................................... 4,761 $ 101,563 Aggressive Growth Stock.................................................... 502,448 1,836,281 International Equity....................................................... -- 2,170,803 Select Bond................................................................ 63,551 -- High Yield Bond............................................................ 18,833 -- Balanced................................................................... 53,159,765 8,178,849
A dividend was declared on June 26, 1995, payable to shareholders of record on June 26, 1995. Dividends were paid from 1995 net investment income and were as follows:
NET INVESTMENT NET PORTFOLIOS INCOME CAPITAL GAINS - ---------------------------------------------------------------------------- ---------- ------------- Index 500 Stock............................................................. $3,829,315 -- Growth Stock................................................................ 459,372 -- Growth and Income Stock..................................................... 636,176 -- Select Bond................................................................. 4,645,196 -- High Yield Bond............................................................. 1,670,096 --
A dividend was declared on December 27, 1995, payable to shareholders of record on December 27, 1995. Dividends paid from 1995 net investment income and 1995 net capital gains were as follows:
NET INVESTMENT NET PORTFOLIOS INCOME CAPITAL GAINS - ---------------------------------------------------------------------------- ---------- ------------- Growth Stock................................................................ $ 638,679 $ 1,581,810 Growth and Income Stock..................................................... 1,026,485 6,333,885 High Yield Bond............................................................. 2,914,721 464,661
Note 12 -- (Unaudited) A Special Meeting of the stockholders of Northwestern Mutual Series Fund, Inc. was held at 720 East Wisconsin Avenue, Milwaukee, Wisconsin, on March 29, 1995. 50 54 NORTHWESTERN MUTUAL SERIES FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1995 The stockholders cast the following votes on the resolutions presented: BE IT RESOLVED, that the following persons are nominated and elected as Directors of the Corporation to serve for the term provided in the By-Laws:
FOR ABSTAIN Stephen N. Graff 2,270,116,766.25 102,692,132.73 John K. MacIver 2,266,153,929.25 106,654,969.73 Martin F. Stein 2,268,092,761.36 104,716,137.62 James D. Ericson 2,270,768,173.35 102,040,725.63 William J. Blake 2,268,894,605.36 103,914,293.62
BE IT RESOLVED, that the selection of Price Waterhouse LLP, independent accountants, as auditors of the Corporation is hereby ratified. YES 2,266,641,454.01 NO 28,050,550.26 ABSTAIN 78,116,894.71 BE IT RESOLVED, that the investment advisory agreement between the Corporation, NMIS and The Northwestern Mutual Life Insurance Company for the Growth and Income Stock Portfolio is hereby approved and that the investment sub-advisory agreement between the Corporation, NMIS and J.P. Morgan Investment Management, Inc. for the Growth and Income Stock Portfolio is hereby approved. YES 62,729,865.96 NO 703,277.71 ABSTAIN 2,324,267.25 BE IT RESOLVED, that the investment advisory agreement between the Corporation, NMIS and The Northwestern Mutual Life Insurance Company for the Growth Stock Portfolio is hereby approved. YES 39,112,648.85 NO 1,136,499.86 ABSTAIN 1,658,855.64 BE IT RESOLVED, that the investment advisory agreement between the Corporation, NMIS and The Northwestern Mutual Life Insurance Company for the Aggressive Growth Stock Portfolio is hereby approved. YES 153,485,939.4 NO 2,613,557.91 ABSTAIN 7,528,159.97 BE IT RESOLVED, that the investment advisory agreement between the Corporation, NMIS and The Northwestern Mutual Life Insurance Company for the High Yield Bond Portfolio is hereby approved. YES 34,244,453.77 NO 156,184.39 ABSTAIN 2,189,223.37 BE IT RESOLVED, that the investment advisory agreement between the Corporation, NMIS and The Northwestern Mutual Life Insurance Company for the International Equity Portfolio is hereby approved and that the investment sub-advisory agreement between NMIS and Templeton Investment Counsel, Inc. for the International Equity Portfolio is hereby approved. YES 231,607,721.07 NO 3,840,003.82 ABSTAIN 10,160,909.98 51 55 NORTHWESTERN MUTUAL SERIES FUND, INC. INDEX 500 STOCK PORTFOLIO SCHEDULE OF INVESTMENTS DECEMBER 31, 1995
MARKET VALUE SHARES (000'S) ---------- -------- COMMON STOCK (94.1%) AEROSPACE (2.2%) Boeing Company 34,700 $ 2,720 E G & G, Inc. 5,300 129 General Dynamics Corporation 6,400 378 Lockheed Martin Corporation 20,254 1,600 Loral Corporation 17,300 612 McDonnell Douglas Corporation 11,400 1,049 Northrop Corporation 5,000 320 Raytheon Company 24,700 1,166 Rockwell International Corp. 22,000 1,162 TRW Inc. 6,600 511 United Technologies Corp. 12,500 1,186 -------- Total 10,833 -------- AIRLINES (0.3%) *AMR Corporation 7,700 572 Delta Air Lines, Inc. 5,100 377 Southwest Airlines Co. 14,500 337 *USAir Group, Inc. 6,300 83 -------- Total 1,369 -------- APPAREL, TEXTILES AND FOOTWEAR (0.4%) Brown Group, Inc. 1,800 26 *Fruit of the Loom Incorporated 7,700 188 Liz Claiborne, Inc. 7,600 211 Nike, Inc. 14,500 1,010 Reebok International Ltd. 7,900 223 Russell Corp. 3,900 108 Springs Industries, Inc. 2,000 83 Stride Rite Corp. 4,900 37 VF Corporation 6,500 343 -------- Total 2,229 -------- AUTO & TRUCKS (1.9%) Chrysler Corporation 38,700 2,143 Ford Motor Company 108,700 3,152 General Motors Corporation 75,600 3,997 *Navistar International Corp. 7,600 80 PACCAR Incorporated 3,935 166 -------- Total 9,538 -------- AUTO RELATED (0.6%) Cooper Tire & Rubber Company 8,500 209 Dana Corporation 10,200 298 Eaton Corporation 7,900 424 Echlin Inc. 6,000 219 Genuine Parts Company 12,400 508 Goodyear Tire & Rubber Company 15,400 699 ITT Industries Inc. 11,700 281 Snap-On Incorporated 4,100 186 -------- Total 2,824 -------- BANKS (6.2%) Banc One Corporation 39,950 1,508 Bank of Boston Corporation 11,300 523 Bank of New York Company Inc. 19,400 946 BankAmerica Corporation 37,900 2,454 Bankers Trust New York Corp. 7,900 525 Barnett Banks Inc. 9,800 578 Boatmans Bancshares, Inc. 12,700 519 Chase Manhattan Corporation 17,700 1,073 Chemical Banking Corporation 25,500 1,498 MARKET VALUE SHARES (000'S) ---------- -------- BANKS (CONTINUED) Citicorp 43,000 $ 2,892 Comerica, Inc. 11,600 465 Corestates Financial Corp. 14,100 534 First Bank System Inc. 13,700 680 First Chicago NBD Corp. 32,128 1,269 First Fidelity Bancorporation 8,100 611 First Interstate Bancorp 7,700 1,051 First Union Corporation 17,400 968 Fleet Financial Group Inc. 25,930 1,057 KeyCorp 23,000 834 Mellon Bank Corporation 14,850 798 J.P. Morgan & Company, Inc. 19,000 1,525 National City Corp. 14,900 494 NationsBank Corp. 27,500 1,915 Norwest Corporation 35,700 1,178 PNC Financial Corp. 23,300 751 P P & L Resources Inc. 16,000 400 Republic New York Corporation 5,700 354 Suntrust Banks Inc. 11,600 795 U.S. Bancorp of Oregon 9,900 333 Wachovia Corporation 17,300 791 Wells Fargo & Company 4,900 1,058 -------- Total 30,377 -------- BEVERAGES (3.5%) Anheuser-Busch Companies Inc. 25,900 1,732 Brown-Forman Corp. 7,000 255 Coca-Cola Company 127,600 9,474 Adolph Coors Co. 3,800 84 Pepsico Inc. 79,700 4,453 Seagram Company Ltd. 37,700 1,305 -------- Total 17,303 -------- BUILDING & CONSTRUCTION (0.3%) Centex Corporation 2,800 97 Crane Co. 3,100 114 Kaufman & Broad Home Corp. 3,200 48 Masco Corporation 16,000 502 *Owens-Corning Fiberglas Corp. 5,100 229 Pulte Corporation 2,700 91 Sherwin-Williams Company 8,600 350 -------- Total 1,431 -------- BUILDING-FOREST PRODUCTS (0.5%) Boise Cascade Corporation 4,800 166 Champion International 9,800 412 Georgia-Pacific Corp. 9,200 631 Louisiana Pacific Corporation 10,900 264 Potlatch Corporation 3,000 120 Weyerhaeuser Company 20,600 891 -------- Total 2,484 -------- CHEMICALS (2.8%) Air Products & Chemicals, Inc. 11,300 596 Dow Chemical Company 27,200 1,914 E.I. du Pont de Nemours & Co. 56,200 3,928 Eastman Chemical Company 8,225 515 Ecolab, Inc. 6,500 195 *FMC Corporation 3,700 250 Freeport McMoRan Copper & Gold, Inc. 20,600 579
52 56 NORTHWESTERN MUTUAL SERIES FUND, INC. INDEX 500 STOCK PORTFOLIO SCHEDULE OF INVESTMENTS DECEMBER 31, 1995
MARKET VALUE SHARES (000'S) ---------- -------- COMMON STOCK (CONTINUED) CHEMICALS (CONTINUED) B.F. Goodrich Company 2,600 $ 177 W.R. Grace & Co. 9,600 568 Great Lakes Chemical 6,600 475 Hercules Incorporated 11,300 637 Mallinckrodt Group 7,800 284 Monsanto Company 11,700 1,433 PPG Industries Inc. 20,500 938 Praxair, Inc. 14,000 471 Rohm & Haas Company 6,800 438 Union Carbide Corporation 13,900 521 -------- Total 13,919 -------- CHEMICALS-SPECIALITY (0.3%) Avery Dennison Corp. 5,400 271 Engelhard Corp. 14,502 315 Morton International, Inc. 15,000 538 Nalco Chemical Company 6,800 205 Sigma-Aldrich Corp. 5,000 247 -------- Total 1,576 -------- COAL, GAS AND PIPELINE (0.1%) Eastern Enterprises 2,000 70 NACCO Industries, Inc. 900 50 Sonat Inc. 8,700 310 -------- Total 430 -------- CONTAINERS (0.1%) Ball Corporation 3,000 82 Bemis Company, Inc. 5,200 133 *Crown Cork & Seal Company, Inc. 9,100 380 -------- Total 595 -------- DIVERSIFIED (2.0%) Allied Signal Inc. 28,700 1,363 Corning Inc. 23,300 746 Dial Corp. 9,400 278 ITT Corp. 11,700 620 Loews Corp. 11,900 933 Minnesota Mining & Manufacturing Co. 42,500 2,816 National Service Industries, Inc. 4,900 159 Ogden Corporation 4,900 105 *Teledyne, Inc. 5,600 143 Tenneco Inc. 18,300 908 Textron Inc. 8,600 580 Tyco Laboratories, Inc. 15,500 552 Whitman Corporation 10,600 246 Worthington Industries 9,150 190 -------- Total 9,639 -------- DRUGS (6.1%) *Alza Corp. 8,300 205 American Home Products Corp. 31,400 3,046 *Amgen Inc. 26,800 1,591 Bristol-Myers Squibb Company 51,300 4,405 Eli Lilly & Company 55,800 3,139 Merck & Co., Inc. 125,200 8,232 Pharmacia & Upjohn Inc. 51,005 1,976 Pfizer Inc. 63,900 4,026 Schering-Plough Corporation 37,700 2,064 Warner-Lambert Company 13,600 1,321 -------- Total 30,005 -------- MARKET VALUE SHARES (000'S) ---------- -------- ELECTRICAL EQUIPMENT (3.3%) Emerson Electric Co. 22,700 $ 1,856 General Electric Company 171,400 12,341 W.W. Grainger, Inc. 5,100 338 Honeywell Inc. 12,900 627 Raychem Corp. 4,400 250 Thomas & Betts Corporation 2,000 147 Westinghouse Electric Corp. 39,700 655 -------- Total 16,214 -------- ELECTRONICS (1.9%) *Advanced Micro Devices, Inc. 10,500 173 AMP Incorporated 21,972 843 *Applied Materials Inc. 17,900 705 Harris Corporation 3,900 213 Intel Corp. 83,300 4,727 *LSI Logic 13,000 426 Micron Technology 20,900 828 *National Semiconductor Corp. 12,500 278 Perkin-Elmer Corporation 4,200 159 Tektronix, Inc. 3,400 167 Texas Instruments Incorporated 19,000 983 -------- Total 9,502 -------- ENGINEERING & CONSTRUCTION (0.1%) Fluor Corporation 8,400 554 -------- ENVIRONMENTAL CONTROL (0.6%) Browning-Ferris Industries Inc. 21,500 634 Johnson Controls Inc. 4,100 282 Laidlaw Transportation Limited 29,800 305 Millipore Corp. 4,500 185 Safety-Kleen Corp. 5,700 89 WMX Technologies, Inc. 49,100 1,467 -------- Total 2,962 -------- FEDERAL GOVERNMENT AGENCY RELATED (1.0%) Federal Home Loan Mortgage Corp. 18,300 1,528 Federal National Mortgage Assoc. 27,600 3,426 -------- Total 4,954 -------- FINANCIAL SERVICES (1.9%) American Express Company 49,400 2,044 Beneficial Corp. 5,400 252 Dean Witter, Discover & Co. 17,100 804 Household International Inc. 9,900 585 MBNA Corp. 15,000 553 Marsh & McLennan Companies, Inc. 7,300 648 Merrill Lynch & Co., Inc. 17,800 908 Morgan Stanley Group Inc. 7,800 629 Salomon Inc. 10,800 383 Transamerica Corporation 6,900 503 Travelers Group Inc. 32,333 2,033 -------- Total 9,342 -------- FOOD SERVICE/LODGING(1.0%) *Darden Restaurant Inc. 16,000 190 *Harrah's Entertainment 10,400 252 Hilton Hotels Corporation 4,900 301
53 57 NORTHWESTERN MUTUAL SERIES FUND, INC. INDEX 500 STOCK PORTFOLIO SCHEDULE OF INVESTMENTS DECEMBER 31, 1995
MARKET VALUE SHARES (000'S) ---------- -------- COMMON STOCK (CONTINUED) FOOD SERVICE/LODGING (CONTINUED) Luby's Cafeterias, Inc. 2,300 $ 51 Marriott International 12,700 486 McDonald's Corporation 70,300 3,172 *Ryan's Family Steak Houses, Inc. 5,300 37 *Shoney's Inc. 4,100 42 Wendy's International, Inc. 10,400 221 -------- Total 4,752 -------- FOODS (3.0%) Archer Daniels Midland Company 54,877 988 CPC International Corp. 14,800 1,016 Campbell Soup Company 25,300 1,518 ConAgra Inc. 24,900 1,027 General Mills, Inc. 16,000 924 H.J. Heinz Company 36,950 1,224 Hershey Foods Corp. 7,900 513 Kellogg Company 22,200 1,715 Pioneer Hi-Bred International 8,500 473 Quaker Oats Company 13,600 469 Ralston Purina Group 10,500 655 Sara Lee Corporation 48,500 1,546 Unilever, N.V. 16,200 2,280 Wm. Wrigley Jr. Company 11,800 619 -------- Total 14,967 -------- HOSPITAL SUPPLIES (3.9%) Abbott Laboratories Inc. 80,300 3,353 Allergan Incorporated 6,500 211 Allergan Incorporated -- Rights 183 0 C.R. Bard, Inc. 5,600 181 Bausch & Lomb Inc. 5,800 230 Baxter International Inc. 28,000 1,173 Becton, Dickinson & Company 6,700 502 *Beverly Enterprises, Inc. 9,900 105 *Biomet, Inc. 11,700 209 *Boston Scientific Corp. 16,400 804 Columbia/HCA Healthcare Corporation 44,900 2,279 *Community Psychiatric Centers 4,300 53 Humana, Inc. 16,400 449 Johnson & Johnson 65,300 5,591 Manor Care, Inc. 6,300 221 Medtronic, Incorporated 23,400 1,307 St. Jude Medical, Inc. 7,100 305 *Tenet Healthcare Corp. 20,200 419 United Healthcare Corp. 17,600 1,153 U.S. HealthCare Incorporated 15,600 725 U.S. Surgical Corporation 5,800 124 -------- Total 19,394 -------- HOUSEHOLD FURNITURE/APPLIANCES (0.5%) Armstrong World Industries, Inc. 3,800 236 Black & Decker Corporation 8,700 307 Maytag Corporation 10,900 221 Newell Co. 16,000 414 Premark International, Inc. 6,400 324 Rubbermaid, Inc. 16,000 408 Stanley Works 4,500 232 Whirlpool Corporation 7,500 399 -------- Total 2,541 -------- MARKET VALUE SHARES (000'S) ---------- -------- INSURANCE (2.9%) Aetna Life & Casualty Company 11,500 $ 796 Alexander & Alexander Services 4,400 84 Allstate Corporation 45,414 1,868 American General Corporation 20,700 722 American International Group, Inc. 47,950 4,435 CIGNA Corporation 7,300 754 Chubb Corporation 8,800 851 General Re Corporation 8,300 1,287 ITT Hartford Group 11,700 566 Jefferson-Pilot Corp. 7,200 335 Lincoln National Corporation 10,500 564 Providian Corporation 9,600 391 SAFECO Inc. 12,700 438 St. Paul Companies, Inc. 8,600 478 Torchmark Corporation 7,200 326 UNUM Corporation 7,300 402 USF&G Corp. 11,300 191 USLIFE Corporation 3,450 103 -------- Total 14,591 -------- LEISURE RELATED (1.5%) *3COM Corp. 16,800 783 *Bally Entertainment Corporation 4,600 64 Brunswick Corporation 9,700 233 Walt Disney Company 52,700 3,109 Fleetwood Enterprises, Inc. 4,700 121 Handlemann Co. 3,300 19 Hasbro Inc. 8,900 276 *King World Productions, Inc. 3,700 144 Mattel, Inc. 22,431 690 Outboard Marine Corporation 2,000 41 *Viacom Incorporated 36,556 1,677 -------- Total 7,157 -------- MACHINERY (1.2%) Briggs & Stratton Corporation 3,000 130 Caterpillar Inc. 20,100 1,181 Cincinnati Milacron Inc. 3,400 89 Cooper Industries, Inc. 10,900 401 Cummins Engine Company, Inc. 4,100 152 Deere & Company 26,300 927 Dover Corporation 11,500 424 Foster Wheeler Corporation 4,100 174 General Signal Corporation 4,800 155 Giddings & Lewis Company 3,400 56 Harnischfeger Industries, Inc. 4,900 163 Illinois Tool Works Inc. 11,900 702 Ingersoll-Rand Company 10,700 376 Pall Corporation 11,600 312 Parker-Hannifin Corporation 7,450 255 Timken Company 3,100 119 TRINOVA Corp. 2,900 83 *Varity Corporation 4,100 152 -------- Total 5,851 -------- MEDIA (0.7%) Capital Cities/ABC, Inc. 15,600 1,925 Comcast Corp. 24,250 441 *Tele-Communications, Inc. 66,100 1,314 -------- Total 3,680 --------
54 58 NORTHWESTERN MUTUAL SERIES FUND, INC. INDEX 500 STOCK PORTFOLIO SCHEDULE OF INVESTMENTS DECEMBER 31, 1995
MARKET VALUE SHARES (000'S) ---------- -------- COMMON STOCK (CONTINUED) METALS & MINING (1.2%) Alcan Aluminum Limited 22,800 $ 710 Aluminum Co. of America 18,100 957 ASARCO, Inc. 4,300 138 Barrick Gold Corporation 35,800 944 Cyprus Minerals Co. 9,350 244 Echo Bay Mines Limited Co. 11,400 118 Homestake Mining Company 14,000 219 Inco Limited 12,000 399 Newmont Mining Corporation 8,688 393 Phelps Dodge Corporation 7,000 436 Placer Dome Incorporated 24,200 584 Reynolds Metals Company 6,400 362 Santa Fe Pacific Gold Corporation 13,260 161 -------- Total 5,665 -------- OFFICE EQUIPMENT (3.9%) *Amdahl Corporation 12,000 102 Apple Computer, Inc. 12,300 392 *Cabletron Systems Inc. 7,200 583 *Cisco Systems Incorporated 27,500 2,052 *Compaq Computer Corporation 26,700 1,282 *Cray Research, Inc. 2,500 62 *Data General Corporation 3,700 51 *Digital Equipment Corporation 14,900 955 Hewlett-Packard Company 51,800 4,338 *Intergraph Corp. 4,700 74 International Business Machines Corp. 57,600 5,285 Moore Corporation Ltd. 10,100 188 Pitney Bowes Inc. 15,300 719 *Silicon Graphics 16,000 440 *Sun Microsystems Inc. 19,300 881 *Tandem Computers Inc. 11,800 125 *Unisys Corporation 17,300 97 Xerox Corporation 10,900 1,493 -------- Total 19,119 -------- OFFICE EQUIPMENT-SERVICES (2.6%) Alco Standard Corporation 11,300 516 Autodesk, Inc. 4,800 164 Automatic Data Processing, Inc. 14,600 1,084 *Ceridian Corp. 6,700 276 Computer Associates International Inc. 24,350 1,385 *Computer Sciences Corp. 5,600 393 First Data Corporation 22,300 1,491 *Microsoft Corporation 59,300 5,204 *Novell, Inc. 37,400 533 *Oracle Corporation 43,900 1,860 Shared Medical Systems Corp. 2,300 125 -------- Total 13,031 -------- OIL & GAS-DOMESTIC (1.4%) Amerada Hess Corporation 9,400 498 Ashland, Inc. 6,400 225 Atlantic Richfield Company 16,300 1,805 Burlington Resource Inc. 12,800 502 Coastal Corp. 10,600 395 Kerr-McGee Corporation 5,200 330 Louisiana Land & Exploration Co. 3,400 146 Occidental Petroleum Corporation 32,200 688 *Oryx Energy Company 10,500 140 MARKET VALUE SHARES (000'S) ---------- -------- OIL & GAS-DOMESTIC (CONTINUED) Pennzoil Company 4,700 $ 199 Phillips Petroleum Company 26,500 904 *Santa Fe Energy Resources, Inc. 9,100 88 Sun Company, Inc. 7,600 208 Unocal Corp. 24,900 725 -------- Total 6,853 -------- OIL & GAS-INTERNATIONAL (6.3%) Amoco Company 50,200 3,608 Chevron Corp. 66,000 3,465 Exxon Corporation 125,700 10,072 Mobil Corporation 40,000 4,480 Royal Dutch Petroleum Co., ADR 54,200 7,649 Texaco Inc. 26,300 2,065 -------- Total 31,339 -------- OIL FIELD SERVICES (0.7%) Baker Hughes Inc. 14,300 349 Dresser Industries, Inc. 18,500 451 Halliburton Company 11,600 587 Helmerich & Payne, Inc. 2,500 74 McDermott International, Inc. 5,500 121 *Rowan Companies, Inc. 8,400 83 Schlumberger Limited 24,500 1,697 *Western Atlas Inc. 5,400 273 -------- Total 3,635 -------- PAPER (1.1%) Federal Paper Board, Inc. 4,600 239 International Paper Company 25,800 977 James River Corp. of Virginia 8,300 200 Kimberly-Clark Corporation 28,222 2,336 Mead Corp. 5,400 282 *Stone Container Corporation 9,700 139 Temple-Inland Inc. 5,700 252 Union Camp Corporation 7,100 338 Westvaco Corporation 10,250 284 Willamette Industries Inc. 5,600 315 -------- Total 5,362 -------- PHOTO & OPTICAL (0.5%) Eastman Kodak Company 34,600 2,318 Polaroid Corporation 4,600 218 -------- Total 2,536 -------- PRINTING & PUBLISHING (1.5%) American Greetings Corp. 7,500 207 Deluxe Corp. 8,400 244 R.R. Donnelley & Sons Company 15,500 610 Dow Jones & Company, Inc. 9,800 391 Dun & Bradstreet Corporation 17,100 1,107 Gannett Company, Inc. 14,200 872 Harcourt General 7,400 310 John H. Harland Company 3,000 63 Jostens, Inc. 3,900 95 Knight-Ridder Inc. 5,000 313 McGraw-Hill, Inc. 5,100 444 Meredith Corporation 2,800 117 New York Times Company 9,800 290 Time Warner Inc. 39,100 1,481 Times Mirror Company 11,300 383
55 59 NORTHWESTERN MUTUAL SERIES FUND, INC. INDEX 500 STOCK PORTFOLIO SCHEDULE OF INVESTMENTS DECEMBER 31, 1995
MARKET VALUE SHARES (000'S) ---------- -------- COMMON STOCK (CONTINUED) PRINTING & PUBLISHING (CONTINUED) Tribune Company 6,600 $ 403 -------- Total 7,330 -------- PROFESSIONAL SERVICES (0.4%) H & R Block, Inc. 10,600 429 *CUC International Inc. 17,650 602 Interpublic Group of Cos., Inc. 7,900 343 Service Corporation International 10,500 462 -------- Total 1,836 -------- RAILROADS (1.0%) Burlington Northern Santa Fe Co. 14,407 1,124 CSX Corporation 21,200 967 Conrail Incorporated 7,900 553 Norfolk Southern Corporation 13,300 1,056 Union Pacific Corporation 20,800 1,373 -------- Total 5,073 -------- RETAIL-FOOD (0.7%) Albertson's, Inc. 25,700 845 American Stores Co. 15,000 401 Fleming Companies, Inc. 3,800 78 Giant Food Inc. 6,000 189 Great Atlantic & Pacific Tea Co., Inc. 3,800 87 *Kroger Company 12,400 465 Supervalu Inc. 6,900 217 Sysco Corporation 18,500 601 Winn-Dixie Stores, Inc. 15,300 564 -------- Total 3,447 -------- RETAIL-GENERAL (3.8%) Charming Shoppes Incorporated 10,100 29 Circuit City Stores, Inc. 9,800 271 Dayton Hudson Corporation 7,300 548 Dillard Department Stores, Inc. 11,400 325 *Federated Department Stores, Inc. 20,500 564 The Gap, Inc. 14,600 613 Home Depot, Inc. 48,199 2,308 K Mart Corporation 46,400 336 The Limited Inc. 36,200 629 Longs Drug Stores Corp. 2,100 101 Lowe's Companies, Inc. 16,200 543 May Department Stores Company 25,200 1,065 Melville Corporation 10,600 326 Mercantile Stores Company 3,700 171 Nordstrom, Inc. 8,300 336 J.C. Penney Company, Inc. 23,000 1,095 Pep Boys - Manny, Moe & Jack 6,200 159 *Price/Costco, Inc. 19,707 301 Rite Aid Corporation 8,500 291 Sears, Roebuck & Company 39,400 1,537 TJX Companies, Inc. 7,300 138 Tandy Corporation 6,600 274 *Toys "R" Us 28,000 609 Wal-Mart Stores, Inc. 232,500 5,202 Walgreen Company 24,900 744 *Woolworth Corp. 13,400 174 -------- Total 18,689 -------- SAVINGS & LOAN (0.2%) H.F. Ahmanson & Company 11,900 315 Golden West Financial Corp. 5,900 326 Great Western Financial Corp. 13,800 352 -------- Total 993 -------- MARKET VALUE SHARES (000'S) ---------- -------- SOAPS & TOILETRIES (2.2%) Alberto-Culver Company 2,800 $ 96 Avon Products, Inc. 6,900 520 The Clorox Company 5,400 387 Colgate-Palmolive Co. 14,700 1,033 Gillette Company 44,900 2,340 International Flavors & Fragrances, Inc. 11,300 542 The Procter & Gamble Company 69,600 5,777 -------- Total 10,695 -------- STEEL (0.3%) *Armco Inc. 10,400 61 Bethlehem Steel Corporation 11,200 157 Inland Steel Industries, Inc. 4,900 123 Nucor Corp. 8,800 503 USX-Marathon Group 30,100 587 USX-U S Steel Group Inc. 8,300 255 -------- Total 1,686 -------- TELECOMMUNICATIONS (3.2%) AT&T Corporation 160,500 10,392 *Andrew Corporation 3,950 151 Cox Communications 2 0 *DSC Communications Corp. 11,600 428 Motorola, Inc. 59,700 3,403 Northern Telecom Limited 25,700 1,105 Scientific-Atlanta, Inc. 7,800 117 *Tellabs Inc. 8,900 329 -------- Total 15,925 -------- TOBACCO (1.9%) American Brands, Inc. 19,100 852 Philip Morris Companies, Inc. 85,000 7,693 UST Incorporated 19,800 661 -------- Total 9,206 -------- TRANSPORTATION-MISC. (0.0%) Pittston Services Group 4,200 132 -------- TRUCKING-SHIPPING (0.2%) Caliber Systems Inc. 4,000 196 Consolidated Freightways, Inc. 4,400 117 *Federal Express Corp. 5,700 421 Ryder System, Inc. 8,000 198 Yellow Corp. 2,800 35 -------- Total 967 -------- UTILITY-ELECTRIC (3.5%) American Electric Power Co., Inc. 18,800 761 Baltimore Gas & Electric Co. 14,900 425 Carolina Power & Light Company 15,700 542 Central & South West Corporation 19,400 541 Cinergy Corporation 15,817 484 Consolidated Edison Co. of New York 23,800 762 Detroit Edison Company 14,900 514 Dominion Resources Inc. 17,600 726 Duke Power Company 20,700 981
56 60 NORTHWESTERN MUTUAL SERIES FUND, INC. INDEX 500 STOCK PORTFOLIO SCHEDULE OF INVESTMENTS DECEMBER 31, 1995
MARKET VALUE SHARES (000'S) ---------- -------- COMMON STOCK (CONTINUED) UTILITY-ELECTRIC (CONTINUED) Entergy Corporation 23,000 $ 673 FPL Group, Inc. 18,700 867 General Public Utilities 11,800 401 Houston Industries Incorporated 26,600 645 Niagara Mohawk Power Corporation 14,600 141 Northern States Power Company 6,900 339 Ohio Edison Company 15,400 362 PECO Energy Company 22,500 678 Pacific Enterprises 8,600 243 Pacific Gas & Electric Co. 42,900 1,217 PacifiCorp 28,800 612 Public Service Enterprise Group, Inc. 24,800 760 SCECorp 45,100 801 Southern Company 67,400 1,660 Texas Utilities Company 22,900 942 UNICOM Corp. 21,700 711 Union Electric Company 10,300 430 -------- Total 17,218 -------- UTILITY-GAS (0.6%) *Columbia Gas System Inc. 5,100 224 Consolidated Natural Gas Co. 9,400 427 Enron Corp. 25,500 972 ENSERCH Corporation 6,900 112 Nicor Inc. 5,100 140 Noram Energy Corporation 12,500 111 ONEOK, Inc. 2,700 62 Panhandle Eastern Corporation 15,200 424 Peoples Energy Corporation 3,500 111 Williams Companies, Inc. 10,300 452 -------- Total 3,035 -------- UTILITY-TELEPHONE (6.1%) *Airtouch Communications 50,000 1,413 ALLTEL Corp. 19,100 563 Ameritech Corporation 56,100 3,310 MARKET SHARES/ VALUE PAR (000'S) ---------- -------- UTILITY-TELEPHONE (CONTINUED) Bell Atlantic Corporation 44,200 $ 2,956 Bellsouth Corporation 100,500 4,372 GTE Corporation 98,200 4,321 MCI Communications Corporation 68,600 1,792 NYNEX Corp. 43,200 2,333 Pacific Telesis Group 43,400 1,459 SBC Communications Incorporated 61,700 3,548 Sprint Corporation 35,300 1,408 U S West Inc. 47,600 1,702 *U S West Media Group 47,600 904 -------- Total 30,081 -------- Total Common Stock 464,866 -------- PREFERRED STOCK (0.0%) DIVERSIFIED (0.0%) Teledyne, Inc. 209 $ 3 -------- Total Preferred Stock 3 -------- MONEY MARKET INVESTMENTS (5.9%) CHEMICALS (0.7%) +E.I. du Pont de Nemours, 5.77%, 1/10/96 $3,500,000 $ 3,495 -------- FEDERAL GOVERNMENT & AGENCIES (0.4%) +U.S. Treasury, 5.23%, 5/30/96 2,000,000 1,956 -------- FINANCIAL SERVICES (1.6%) +IBM Credit Corporation, 5.71%, 1/4/96 7,900,000 7,896 -------- PRINTING & PUBLISHING (1.6%) +Gannett Company Inc., 5.75%, 1/10/96 8,000,000 7,989 -------- TOBACCO (1.6%) +Philip Morris Companies, Inc., 5.58%, 1/17/96 8,000,000 7,980 -------- Total Money Market Investments 29,316 -------- Total Investments $494,185 ========
* Non-Income Producing + Held by the custodian in a segregated account as collateral for open financial futures contracts. Information regarding open futures contracts as of December 31, 1995 is summarized below:
UNREALIZED APPRECIATION NUMBER OF EXPIRATION (DEPRECIATION) ISSUER CONTRACTS DATE (000'S) -------------------- --------- ---------- -------------- S&P 500 Stock Index 83 March 1996 $753 S&P 500 Stock Index 11 June 1996 (5) ------ Total $748
The Accompanying Notes are an Integral Part of the Financial Statements 57 61 NORTHWESTERN MUTUAL SERIES FUND, INC. GROWTH STOCK PORTFOLIO SCHEDULE OF INVESTMENTS DECEMBER 31, 1995
MARKET VALUE SHARES (000'S) ---------- ------- COMMON STOCK (93.1%) AEROSPACE (1.2%) Boeing Company 13,000 $ 1,019 ------- AIRLINES (1.5%) *AMR Corporation 3,600 267 Delta Air Lines, Inc. 5,000 369 *Midwest Express Holdings, Inc. 25,000 694 ------- Total 1,330 ------- AUTO & TRUCKS (1.0%) Chrysler Corporation 16,100 891 ------- AUTO RELATED (1.2%) Echlin Inc. 14,600 533 Magna International Inc. 12,200 528 ------- Total 1,061 ------- BANKS (4.5%) Chase Manhattan Corporation 18,000 1,091 Citicorp 10,900 733 First Interstate Bancorp 5,500 751 First Union Corporation 16,100 896 Mellon Bank Corporation 7,300 392 ------- Total 3,863 ------- BEVERAGES (2.1%) Coca-Cola Company 8,600 639 Pepsico Inc. 20,700 1,157 ------- Total 1,796 ------- CHEMICALS (2.4%) Air Products & Chemicals, Inc. 13,700 723 E.I. du Pont de Nemours & Co. 10,150 709 PPG Industries Inc. 13,100 599 ------- Total 2,031 ------- CHEMICALS-SPECIALITY (2.4%) Avery Dennison Corp. 15,000 752 Ecolab, Inc. 26,000 780 Nalco Chemical Company 17,000 512 ------- Total 2,044 ------- COAL, GAS AND PIPELINE (0.9%) Sonat Inc. 21,000 748 ------- DIVERSIFIED (0.2%) Minnesota Mining & Manufacturing Company 2,500 166 ------- DRUGS (3.8%) *Forest Laboratories Inc. 15,200 688 Eli Lilly & Company 11,600 653 Merck & Co., Inc. 17,000 1,118 Pfizer Inc. 12,600 794 ------- Total 3,253 ------- ELECTRICAL EQUIPMENT (3.6%) Emerson Electric Co. 15,000 1,226 General Electric Company 14,100 1,015 W.W. Grainger, Inc. 12,600 835 ------- Total 3,076 ------- MARKET VALUE SHARES (000'S) ---------- ------- ELECTRONICS (3.0%) AVX Corporation 10,000 $ 265 *Applied Materials Inc. 19,300 760 Intel Corp. 12,000 681 Molex Inc. 29,408 901 ------- Total 2,607 ------- ENVIRONMENTAL CONTROL (0.8%) Browning-Ferris Industries Inc. 24,200 714 ------- FINANCIAL SERVICES (2.6%) Dean Witter, Discover & Co. 11,300 531 *Donaldson, Lufkin & Jenrette 30,000 937 Franklin Resources 14,800 746 ------- Total 2,214 ------- FOOD SERVICE/LODGING (3.1%) *Harrah's Entertainment 29,000 703 McDonald's Corporation 21,500 970 *Promus Hotels 45,000 1,001 ------- Total 2,674 ------- FOODS (3.6%) CPC International Corp. 14,600 1,002 Campbell Soup Company 15,500 930 General Mills, Inc. 16,800 970 Kellogg Company 3,000 232 ------- Total 3,134 ------- HOSPITAL SUPPLIES (5.2%) Columbia/HCA Healthcare Corp. 22,400 1,137 Guidant Corp. 18,000 760 Johnson & Johnson 15,100 1,293 Manor Care, Inc. 3,800 133 United Healthcare Corp. 18,000 1,179 ------- Total 4,502 ------- HOUSEWARES (1.2%) Newell Co. 41,500 1,074 ------- INSURANCE (4.4%) Aetna Life & Casualty Company 12,300 852 CIGNA Corporation 9,000 929 PMI Group Inc. 15,000 679 Prudential Reinsurance, Inc. 57,000 1,332 ------- Total 3,792 ------- LEISURE RELATED (2.3%) Walt Disney Company 16,700 985 Mattel, Inc. 31,425 966 ------- Total 1,951 ------- MACHINERY (1.0%) Deere & Company 4,600 162 Ingersoll-Rand Company 20,000 702 ------- Total 864 ------- OFFICE EQUIPMENT (3.7%) *BT Office Products International 45,000 720 Hewlett-Packard Company 14,000 1,172 International Business Machines Corp. 14,500 1,330 ------- Total 3,222 -------
58 62 NORTHWESTERN MUTUAL SERIES FUND, INC. GROWTH STOCK PORTFOLIO SCHEDULE OF INVESTMENTS DECEMBER 31, 1995
MARKET VALUE SHARES (000'S) ---------- ------- COMMON STOCK (CONTINUED) OFFICE EQUIPMENT-SERVICES (4.9%) Alco Standard Corporation 25,200 $ 1,150 Automatic Data Processing, Inc. 2,400 178 DST Systems, Inc. 40,000 1,140 General Motors, Class E 23,100 1,201 *Microsoft Corporation 5,800 509 ------- Total 4,178 ------- OIL & GAS-DOMESTIC (1.5%) Ashland, Inc. 9,100 320 Tosco Corp. 5,000 191 Unocal Corp. 27,700 807 ------- Total 1,318 ------- OIL & GAS-INTERNATIONAL (4.6%) Amoco Company 12,100 870 British Petroleum Co. Ltd. 6,800 694 Exxon Corporation 10,900 873 Mobil Corporation 9,800 1,098 Texaco Inc. 5,400 424 ------- Total 3,959 ------- PAPER (0.6%) International Paper Company 14,000 530 ------- PRINTING & PUBLISHING (1.5%) McGraw-Hill Companies 8,100 706 Tribune Company 9,500 581 ------- Total 1,287 ------- RAILROADS (3.9%) Burlington Northern Santa Fe 11,300 881 +Canadian National Railway Co. 75,000 1,687 *Southern Pacific Transportation Co. 32,000 768 ------- Total 3,336 ------- RETAIL-FOOD (0.9%) Albertson's, Inc. 23,100 759 ------- RETAIL-GENERAL (6.3%) Dayton Hudson Corporation 5,600 420 *Federated Department Stores 24,200 665 Home Depot, Inc. 27,200 1,302 *OfficeMax, Inc. 51,200 1,146 J.C. Penney Company, Inc. 13,100 624 Wal-Mart Stores, Inc. 20,200 452 Walgreen Company 26,600 795 ------- Total 5,404 ------- MARKET SHARES/ VALUE PAR (000'S) ---------- ------- SOAPS & TOILETRIES (2.5%) Colgate-Palmolive Co. 9,000 $ 632 Gillette Company 14,000 730 The Procter & Gamble Company 9,700 805 ------- Total 2,167 ------- TELECOMMUNICATIONS (5.2%) AT&T Corporation 19,800 1,282 *DSC Communications Corp. 12,500 461 Frontier Corp. 35,600 1,068 Motorola, Inc. 13,000 741 *WorldCom, Inc. 25,000 881 ------- Total 4,433 ------- TOBACCO (0.8%) Philip Morris Companies, Inc. 8,000 724 ------- UTILITY-ELECTRIC (2.2%) Duke Power Company 19,700 933 FPL Group, Inc. 11,800 547 Southern Company 17,900 441 ------- Total 1,921 ------- UTILITY-TELEPHONE (2.5%) Ameritech Corporation 12,400 732 GTE Corporation 19,600 862 U S West Inc. 9,500 340 *U S West Media Group 9,500 181 ------- Total 2,115 ------- Total Common Stock 80,157 ------- MONEY MARKET INVESTMENTS (6.9%) FINANCIAL SERVICES (1.2%) IBM Credit Corporation, 5.73%, 1/4/96 $1,000,000 $ 999 ------- FOODS (1.9%) Cargill Incorporated, 5.75%, 1/2/96 1,600,000 1,600 ------- PRINTING & PUBLISHING (1.9%) Gannett Company Inc., 5.75%, 1/10/96 1,600,000 1,598 ------- TOBACCO (1.9%) ++Philip Morris Companies, Inc. 5.58%, 1/17/96 1,600,000 1,596 ------- Total Money Market Investments 5,793 ------- Total Investments $85,950 =======
* Non-Income Producing + Installment payment security purchased November 16, 1995, for which the Portfolio has paid $900,000 as of December 31, 1995. The Portfolio will make the final installment payment of approximately $600,000 on November 29, 1996. ++ $600,000 is segregated as collateral for future payment of the installment payment security. The Accompanying Notes are an Integral Part of the Financial Statements 59 63 NORTHWESTERN MUTUAL SERIES FUND, INC. GROWTH AND INCOME STOCK PORTFOLIO SCHEDULE OF INVESTMENTS DECEMBER 31, 1995
MARKET VALUE SHARES (000'S) ---------- -------- COMMON STOCK (95.8%) AEROSPACE (1.6%) Boeing Company 10,500 $ 823 Sundstrand Corp. 20,200 1,422 -------- Total 2,245 -------- AUTO & TRUCKS (2.1%) General Motors Corporation 53,100 2,808 -------- AUTO RELATED (0.9%) Cooper Tire & Rubber Company 47,500 1,170 -------- BANKS (6.9%) BankAmerica Corporation 40,600 2,629 First Union Corporation 32,200 1,791 Firstar Corporation 44,300 1,755 NationsBank Corp. 36,300 2,527 Standard Federal Bancorp 17,800 701 -------- Total 9,403 -------- BEVERAGES (2.9%) Anheuser-Busch Companies Inc. 9,600 642 Pepsico Inc. 58,100 3,246 -------- Total 3,888 -------- BROADCASTING (0.5%) Turner Broadcasting System 25,500 663 -------- BUILDING & CONSTRUCTION (0.6%) *USG Corporation 29,400 882 -------- CHEMICALS (3.2%) Albemarle Corporation 73,900 1,432 E.I. du Pont de Nemours & Co. 19,100 1,335 Freeport McMoRan Copper & Gold Inc. 1,029 26 Union Carbide Corporation 42,400 1,590 -------- Total 4,383 -------- CHEMICALS-SPECIALITY (0.7%) Wellman Inc. 43,300 985 -------- COAL, GAS AND PIPELINE (0.8%) Anadarko Petroleum Corp. 21,000 1,137 -------- DIVERSIFIED (2.8%) Allied Signal Inc. 62,200 2,954 *Coltec Industries Inc. 70,500 819 -------- Total 3,773 -------- DRUGS (3.8%) *Forest Laboratories Inc. 30,900 1,398 Eli Lilly & Company 43,800 2,374 Warner-Lambert Company 13,200 1,282 -------- Total 5,054 -------- ELECTRICAL EQUIPMENT (3.6%) General Electric Company 36,500 2,628 W.W. Grainger, Inc. 33,800 2,239 -------- Total 4,867 -------- ELECTRONICS (1.9%) General Instrument Corp. 57,300 1,339 Hewlett-Packard Company 15,500 1,298 -------- Total 2,637 -------- MARKET VALUE SHARES (000'S) ---------- -------- ENVIRONMENTAL CONTROL (0.9%) Wheelabrator Technologies Inc. 70,700 $ 1,184 -------- FINANCIAL SERVICES (1.4%) Dean Witter, Discover & Co. 26,500 1,246 Great Western Financial Corp. 25,800 658 -------- Total 1,904 -------- FOODS (0.8%) General Mills, Inc. 17,900 1,034 -------- HOSPITAL SUPPLIES (6.4%) Bausch & Lomb Inc. 60,500 2,397 Columbia/HCA Healthcare Corp. 40,700 2,066 Healthcare Retirement Corp. 42,900 1,502 Humana, Inc. 99,800 2,732 -------- Total 8,697 -------- INSURANCE (2.9%) AMBAC, Inc. 24,400 1,144 First Colony Corporation 34,100 865 Providian Corporation 46,800 1,907 -------- Total 3,916 -------- LEISURE RELATED (2.2%) *Circus Circus Enterprises 68,500 1,909 International Game Technology 100,900 1,097 -------- Total 3,006 -------- MACHINERY (1.4%) *Cooper Cameron Corp. 16,760 595 Cooper Industries, Inc. 35,462 1,303 -------- Total 1,898 -------- MEDIA (1.9%) *Tele-Communications, Inc. 129,200 2,568 -------- METALS & MINING (1.8%) Aluminum Co. of America 47,200 2,496 -------- OFFICE EQUIPMENT (1.5%) Quantum Corp. 73,300 1,182 *Read-Rite Corporation 39,800 925 -------- Total 2,107 -------- OFFICE EQUIPMENT-SERVICES (2.0%) Adobe Systems Incorporated 10,000 620 Autodesk, Inc. 36,200 1,240 *Novell, Inc. 58,700 836 -------- Total 2,696 -------- OIL & GAS-DOMESTIC (2.8%) Ashland, Inc. 57,000 2,002 Sun Company, Inc. 32,000 876 Unocal Corp. 32,600 949 -------- Total 3,827 -------- OIL & GAS-INTERNATIONAL (5.2%) British Petroleum Co. Ltd. 8,600 878 Chevron Corp. 28,000 1,470 Royal Dutch Petroleum Co., ADR 21,900 3,091 Texaco Inc. 21,900 1,719 -------- Total 7,158 --------
60 64 NORTHWESTERN MUTUAL SERIES FUND, INC. GROWTH AND INCOME STOCK PORTFOLIO SCHEDULE OF INVESTMENTS DECEMBER 31, 1995
MARKET VALUE SHARES (000'S) ---------- -------- COMMON STOCK (CONTINUED) PAPER (0.9%) Mead Corp. 22,600 $ 1,181 -------- PRINTING & PUBLISHING (0.5%) Time Warner Inc. 17,800 674 -------- PROFESSIONAL SERVICES (2.5%) Service Corporation International 76,400 3,362 -------- RAILROADS (2.1%) Union Pacific Corporation 44,500 2,937 -------- RETAIL-GENERAL (4.8%) Melville Corporation 24,200 744 Nordstrom, Inc. 25,400 1,029 J.C. Penney Company, Inc. 36,400 1,733 *Symbol Technologies Inc. 20,500 810 TJX Companies, Inc. 11,000 208 Wal-Mart Stores, Inc. 90,100 2,016 -------- Total 6,540 -------- SAVINGS & LOAN (0.9%) H.F. Ahmanson & Company 44,700 1,184 -------- SOAPS & TOILETRIES (3.9%) Avon Products, Inc. 12,700 957 Colgate-Palmolive Co. 28,000 1,967 The Procter & Gamble Company 28,300 2,349 -------- Total 5,273 -------- TELECOMMUNICATIONS (4.7%) AT&T Corporation 44,000 2,849 *Bay Networks 45,100 1,855 Motorola, Inc. 30,600 1,744 -------- Total 6,448 -------- TOBACCO (2.9%) Philip Morris Companies, Inc. 44,000 3,982 -------- TRUCKING-SHIPPING (1.1%) Consolidated Freightways, Inc. 57,000 1,510 -------- MARKET SHARES/ VALUE PAR (000'S) ---------- -------- UTILITY-ELECTRIC (3.7%) Dominion Resources Inc. 24,800 $ 1,023 Entergy Corporation 44,400 1,299 Public Service Co. of Colorado 34,900 1,235 Western Resources 46,200 1,542 -------- Total 5,099 -------- UTILITY-TELEPHONE (4.3%) Bellsouth Corporation 48,300 2,101 MCI Communications Corporation 37,800 988 U S West Inc. 61,900 2,213 *U S West Media Group 33,200 631 -------- Total 5,933 -------- Total Common Stock 130,509 -------- MONEY MARKET INVESTMENTS (4.2%) CHEMICALS (0.7%) E.I. du Pont de Nemours & Co., 5.83%, 1/5/96 $1,000,000 $ 999 -------- FINANCIAL SERVICES (0.9%) General Electric Capital Corp., 5.76%, 1/17/96 600,000 599 IBM Credit Corporation, 5.73%, 1/4/96 600,000 600 -------- Total 1,199 -------- PRINTING & PUBLISHING (0.4%) Gannett Company Inc., 5.75%, 1/10/96 600,000 599 -------- TOBACCO (2.2%) Philip Morris Companies, Inc., 5.78%, 1/5/96 3,000,000 2,998 -------- Total Money Market Investments 5,795 -------- Total Investments $136,304 ========
* Non-Income Producing The Accompanying Notes are an Integral Part of the Financial Statements 61 65 NORTHWESTERN MUTUAL SERIES FUND, INC. AGGRESSIVE GROWTH STOCK PORTFOLIO SCHEDULE OF INVESTMENTS DECEMBER 31, 1995
MARKET VALUE SHARES (000'S) ---------- -------- COMMON STOCK (93.7%) AIRLINES (1.4%) *ValuJet, Inc. 285,000 $ 7,054 *Western Pacific Airlines, Inc. 72,500 1,214 -------- Total 8,268 -------- AUTO RELATED (1.8%) *Custom Chrome Inc. 180,800 4,181 *O'Reilly Automotive, Inc. 102,800 2,981 *Thompson PBE, Inc. 214,000 2,996 -------- Total 10,158 -------- BANKS (0.9%) *Leader Financial Corp. 138,900 5,191 -------- BEVERAGES (0.9%) *Robert Mondavi Corporation 185,900 5,135 -------- CHEMICALS (0.7%) A. Schulman Inc. 174,950 3,936 -------- CHEMICALS-SPECIALITY (0.7%) Cambrex Corporation 98,300 4,067 -------- CONSUMER PRODUCTS (1.7%) *Blythe Industries, Inc. 342,200 10,095 -------- DRUGS (1.4%) Cardinal Health Inc. 150,312 8,230 -------- ELECTRICAL EQUIPMENT (1.3%) *Catalina Marketing Corporation 68,300 4,286 *CIDCO Incorporated 132,200 3,371 -------- Total 7,657 -------- ELECTRONICS (5.2%) AVX Corporation 125,000 3,312 *Altera Corporation 78,600 3,910 *Applied Materials Inc. 96,200 3,788 *Electroglas, Inc. 137,000 3,356 *In Focus Systems Inc. 127,600 4,610 Methode Electronics Inc. 385,500 5,493 Molex Inc. 176,389 5,402 -------- Total 29,871 -------- ENVIRONMENTAL CONTROL (1.3%) *TETRA Technologies, Inc. 336,250 7,650 -------- FINANCIAL SERVICES (2.9%) Investors Financial Services 115,900 2,405 Money Store, Inc. 300,750 4,699 PMT Services, Inc. 180,300 5,454 WFS Financial Corporation 230,300 4,491 -------- Total 17,049 -------- FOOD SERVICE/LODGING (2.4%) *Hospitality Franchise Systems, Inc. 167,500 13,693 -------- HOSPITAL SUPPLIES (18.2%) *Access Health, Inc. 47,000 2,080 *American Medical Response Inc. 202,800 6,591 *Apria Healthcare Group, Inc. 100,000 2,825 Columbia/HCA Healthcare Corp. 118,200 5,999 Compdent Corporation 161,800 6,715 *Gulf South Medical Supply, Inc. 290,000 8,772 *Heart Technology 228,500 7,512 *Inbrand Corporation 344,050 5,677 *Medaphis Corporation 167,400 6,194 *MediSense Inc. 252,000 7,969 *Patterson Dental Company 226,250 6,109 *PhyCor, Inc. 59,100 2,988 *Physician Sales & Service, Inc. 100,000 2,850 *Quorum Health Group, Inc. 216,300 4,759 MARKET VALUE SHARES (000'S) ---------- -------- HOSPITAL SUPPLIES (CONTINUED) *Respironics Inc. 265,800 $ 5,582 *Sybron, Inc. 264,200 6,275 *United Dental Care, Inc. 104,100 4,294 United Healthcare Corp. 61,700 4,041 *Ventritex, Inc. 113,000 1,963 *Vivra Incorporated 243,300 6,113 -------- Total 105,308 -------- HOUSEHOLD FURNITURE (1.3%) *Department 56, Inc. 189,200 7,261 -------- INSURANCE (1.4%) Amerin Corp. 52,000 1,391 PMI Group Inc. 147,600 6,679 -------- Total 8,070 -------- LEISURE RELATED (2.8%) *Broderbund Software Inc. 56,100 3,408 The Marcus Corporation 124,050 3,396 *Scientific Games Holding Corp. 213,900 8,075 *Studio Plus Hotels Inc. 40,500 1,043 -------- Total 15,922 -------- OFFICE EQUIPMENT (6.0%) *Nu-Kote Holdings Inc. -- "A" Series 377,200 6,412 *Peak Technologies 209,300 6,541 *Tivoli Systems Inc. 166,700 5,626 *Viking Office Products Inc. 175,200 8,147 *Zebra Technologies 239,200 8,133 -------- Total 34,859 -------- OFFICE EQUIPMENT-SERVICES (13.2%) American Management System Inc. 255,650 7,669 *Corporate Express, Inc. 203,400 6,127 Danka Business Systems 194,900 7,211 First Data Corporation 147,095 9,837 HBO & Co. 75,000 5,747 *Hyperion Software 290,600 6,175 Medic Computer Systems, Inc. 86,200 5,215 *Metatools, Inc. 42,000 1,092 Paychex Incorporated 131,330 6,550 *Peoplesoft, Inc. 157,400 6,768 SPS Transactional Services, Inc. 136,700 4,050 *TESSCO Technologies Incorporated 190,700 5,435 *Transaction Systems Architects 132,000 4,455 -------- Total 76,331 -------- OIL & GAS PROGRAMS (0.8%) Parker And Parsley Petroleum Co. 199,400 4,387 -------- OIL FIELD SERVICES (1.7%) Production Operators Corp. 144,300 4,762 Tosco Corp. 130,000 4,956 -------- Total 9,718 -------- PAPER (0.9%) Wausau Paper Mills Company 193,055 5,261 -------- PROFESSIONAL SERVICES (4.2%) *CUC International Inc. 229,350 7,827 Cintas Corporation 150,300 6,688 *Interim Service 92,000 3,197 *Robert Half International Inc. 156,600 6,558 -------- Total 24,270 -------- RAILROADS (1.2%) *Wisconsin Central Transportation 102,400 6,733 --------
62 66 NORTHWESTERN MUTUAL SERIES FUND, INC. AGGRESSIVE GROWTH STOCK PORTFOLIO SCHEDULE OF INVESTMENTS DECEMBER 31, 1995
MARKET VALUE SHARES (000'S) ---------- -------- COMMON STOCK (CONTINUED) RETAIL-APPAREL (0.6%) The Talbots, Inc. 113,600 $ 3,266 -------- RETAIL-GENERAL (7.7%) *DST Systems, Inc. 93,800 2,673 *Eastbay, Inc. 128,000 2,528 Fastenal Co. 152,400 6,439 Global Direct Mail Corp. 200,000 5,500 *Kohl's Department Stores 75,000 3,937 *Micro Warehouse Inc. 105,400 4,559 *Oakley, Inc. 152,200 5,175 *OfficeMax, Inc. 316,200 7,075 Tractor Supply Company 221,200 4,369 *Trend-Lines, Inc. 231,000 2,310 -------- Total 44,565 -------- SOFTWARE (0.9%) Sterling Software, Inc. 85,000 5,302 -------- TELECOMMUNICATIONS (6.6%) *ADC Telecommunication 118,300 4,318 *APAC TeleServices, Inc. 118,400 3,952 *AirTouch Communications 182,600 5,158 *CellStar Corp. 73,200 1,903 *Firefox Communications, Inc. 110,000 2,585 *LCI International 291,200 5,970 LIN Television Corp. 121,500 3,615 *Saville Systems PLC-ADR 200,000 2,850 *Tellabs Inc. 155,400 5,750 *Uunet Technologies, Inc. 37,000 2,331 -------- Total 38,432 -------- MARKET SHARES/ VALUE PAR (000'S) ---------- -------- TRANSPORTATION (0.1%) Cronos Group 40,000 $ 470 -------- TRUCKING-SHIPPING (3.5%) *Eagle USA Airfreight, Inc. 20,000 525 *Fritz Companies, Inc. 286,200 11,877 *Heartland Express Incorporated 237,827 4,697 *Landstar System, Inc. 125,000 3,344 -------- Total 20,443 -------- Total Common Stock 541,598 -------- MONEY MARKET INVESTMENTS (6.3%) CHEMICALS (1.3%) E.I. du Pont de Nemours & Co., 5.83%, 1/5/96 $7,500,000 $ 7,495 -------- FINANCIAL SERVICES (1.4%) IBM Credit Corporation, 5.73%, 1/4/96 8,000,000 7,996 -------- FOODS (0.8%) Cargill Incorporated, 5.75%, 1/2/96 5,000,000 4,999 -------- PRINTING & PUBLISHING (1.4%) Gannett Company Inc., 5.75%, 1/10/96 8,000,000 7,989 -------- TOBACCO (1.4%) Philip Morris Companies, Inc., 5.58%, 1/17/96 8,000,000 7,980 -------- Total Money Market Investments 36,459 -------- Total Investments $578,057 ========
* Non-Income Producing The Accompanying Notes are an Integral Part of the Financial Statements 63 67 NORTHWESTERN MUTUAL SERIES FUND, INC. INTERNATIONAL EQUITY PORTFOLIO SCHEDULE OF INVESTMENTS DECEMBER 31, 1995
MARKET VALUE COUNTRY SHARES (000'S) ------- ----------- -------- COMMON STOCKS (87.5%) AIRLINES (1.3%) Singapore Airlines Ltd. Sing. 205,000 $ 1,913 Qantas Airways (144A) Austrl. 155,000 2,581 -------- Total 4,494 -------- APPLIANCES & HOUSEHOLD DURABLES (1.5%) Sony Corporation Jpn. 83,000 4,976 -------- AUTOMOBILES (2.5%) Renault SA Fr. 117,500 3,387 Volvo Aktieboleget, B Free Swe. 240,000 4,914 -------- Total 8,301 -------- BANKING & CREDIT (15.6%) Argentina Corp. Bancaris de Espana, ADR Sp. 195,000 3,924 Australia & New Zealand Bank Group Austrl. 926,097 4,343 Banco de Andulucia Sp. 30,000 4,370 Banque National de Paris, ADR (144A) Fr. 117,000 5,284 Barclay's Bank, PLC U.K. 311,016 3,566 Banco Bilboa Vizcaya Sp. 162,500 5,844 Banco Portugues de Investimentos Port. 71,350 853 Canadian Imperial Bank of Commerce Can. 177,000 5,266 Deutsche Bank Ger. 88,000 4,171 HSBC Holdings H.K. 278,237 4,210 National Bank of Canada Montreal Can. 360,000 2,933 Panin Bank Indo. 580,000 520 Stadshypotek AB "A" Swe. 120,000 2,403 Svenska Handelsbanken S A Swe. 252,000 5,236 -------- Total 52,923 -------- BUILDING MATERIALS AND COMPONENTS (1.2%) Pioneer International Ltd. Austrl. 1,600,000 4,127 -------- BUSINESS & PUBLIC SERVICE (4.5%) Esselte AB, Series A Swe. 269,900 4,063 SGS Holdings Swtz. 2,770 5,497 Welsh Water PLC U.K. 371,666 4,472 *Waste Management PLC U.K. 98,000 1,053 -------- Total 15,085 -------- CHEMICALS (4.4%) Bayer AG Ger. 18,000 4,751 European Vinyls Corp. EVC International Neth. 36,525 949 Rhone Poulenc S.A., Series A Fr. 243,000 5,212 Solvay Et Cie A NPV Bel. 7,300 3,956 -------- Total 14,868 -------- CONSTRUCTION AND HOUSING (1.2%) Daito Trust Construction Co. Jpn. 195,000 2,304 Kyudenko Corp. Jpn. 122,000 1,607 -------- Total 3,911 -------- ELECTRICAL & ELECTRONICS (5.2%) BBC Brown, Boveri & Co., Series A Swtz. 4,730 5,492 MARKET VALUE COUNTRY SHARES (000'S) ------- ----------- -------- ELECTRICAL & ELECTRONICS (CONTINUED) Hitachi Ltd. Jpn. 450,000 $ 4,533 Alcatel Alsthom DG Fr. 49,000 4,230 BICC U.K. 815,000 3,482 -------- Total 17,737 -------- ENERGY SOURCES (3.7%) Repsol SA Sp. 122,000 3,991 Saga Petroleum, Series "A" Nor. 260,000 3,471 Societe Nationale Elf Aquitaine Fr. 70,301 5,186 -------- Total 12,648 -------- FINANCIAL SERVICES (3.8%) AXA SA Fr. 27,000 1,822 *Capital Portugal Fund Port. 16,000 1,411 Chile Fund U.S. 35,000 910 India Fund, Series "B" U.K. 1,256,515 2,118 *JF Indonesia Fund Inc. H.K. 456,600 502 Korea International Trust Kor. 52 2,964 Thai Fund Inc. Thai 50,500 1,130 Thailand International Fund Thai 70 2,082 -------- Total 12,939 -------- FOOD & HOUSEHOLD PRODUCTS (3.1%) Albert Fisher Group U.K. 4,884,524 3,566 Cafe de Coral Holdings, Ltd. H.K. 7,072,000 1,610 Hillsdown Holdings U.K. 1,531,627 4,045 Vitro SA NPV Mex. 768,400 1,195 -------- Total 10,416 -------- FOREST PRODUCTS & PAPER (3.2%) Barito Pacific Timber Indo. 937,000 686 Carter Holt Harvey Ltd. N.Z. 1,995,957 4,306 Metsa-Serla OY "B" Fin. 55,500 1,710 Stora Kopparbergs, Series B Free Swed. 350,000 4,189 -------- Total 10,891 -------- HEALTH & PERSONAL CARE (3.0%) Astra AB, Series A Free Swed. 140,000 5,585 Hafslund Nycomed "A" Norw. 170,000 4,432 -------- Total 10,017 -------- INSURANCE (4.8%) Aegon NV Neth. 117,837 5,212 International Nederlanden Group Neth. 76,000 5,076 London Insurance Group Can. 162,600 3,289 *Zurich Versicherung Namen Swtz. 8,400 2,511 -------- Total 16,088 -------- MACHINERY & ENGINEERING (1.3%) VA Technologies AG Bearer (144A) Aus. 30,000 3,806 Hitachi Koki Co. Ltd. Jpn. 75,000 680 -------- Total 4,486 -------- MERCHANDISING (1.4%) Koninklijke Bijenkorf Beheer Neth. 42,874 2,831 Kwik Save Group U.K. 226,100 1,756 -------- Total 4,587 --------
64 68 NORTHWESTERN MUTUAL SERIES FUND, INC. INTERNATIONAL EQUITY PORTFOLIO SCHEDULE OF INVESTMENTS DECEMBER 31, 1995
MARKET VALUE COUNTRY SHARES (000'S) ------- ----------- -------- COMMON STOCKS (CONTINUED) METALS & MINING (2.2%) Elkem A S Oslo ord A Free Nor. 192,000 $ 2,184 *Inmet Mining Ltd. Can. 192,500 1,410 Pechiney Cert. D'Invest Fr. 11,250 426 *Union Miniere, NPV Bel. 50,500 3,366 -------- Total 7,386 -------- MULTI-INDUSTRY (5.5%) Amer Group "A" Fin. 175,000 2,732 BTR Nylex Ltd. Austrl. 324,000 1,582 Hutchinson Whampoa H.K. 798,000 4,850 Jardine Matheson Holdings H.K. 387,074 2,651 Jardine Strategic Holdings H.K. 971,830 2,974 Swire Pacific Class "A" H.K. 472,500 3,666 -------- Total 18,455 -------- RAILROAD (0.8%) Brambles Ind. Ltd. Austrl. 240,000 2,676 -------- TELECOMMUNICATIONS (6.9%) CIA De Telefonos Chile SA Chile 36,500 3,025 Nacional Financiera CNV Mex. 101,300 3,356 Phillipine Long Distance Telephone Phil. 61,000 3,302 *SPT Telecom AS Chez. 12,500 1,181 Stet Di Risp Non-Conv. Italy 2,320,000 4,734 Telebras ADR Braz. 77,500 3,672 Telefonica de Espana Sp. 304,000 4,203 -------- Total 23,473 -------- UTILITIES-ELECTRIC & GAS (9.1%) British Gas U.K. 1,025,000 4,045 *CEZ Ceske Energeticke Zavody Chez. 79,690 2,881 Electricidad De Caracas Venz. 3,154,003 2,155 Endesa National De Electric Sp. 63,000 3,562 Evn Energieversorgung Aus. 32,000 4,392 Hong Kong Electric H.K. 990,000 3,252 Iberdrola SA Sp. 587,500 5,367 South Wales Electricity U.K. 204,600 2,965 *Veba AG Warrants, Exp. 4/6/98 Ger. 12,000 1,891 -------- Total 30,510 -------- MARKET SHARES/ VALUE COUNTRY PAR (000'S) ------- ----------- -------- WHOLESALE & INTERNATIONAL TRADE (1.3%) Brierley Investments Ltd. N.Z. 5,716,091 $ 4,522 -------- Total Common Stock 295,516 -------- PREFERRED STOCK (0.2%) BUSINESS & PUBLIC SERVICE (0.2%) *Welsh Water PLC U.K. 401,400 $ 678 -------- MULTI-INDUSTRY (0.0%) Jardine Strategic Holding IDR H.K. 134,000 144 -------- Total Preferred Stock 822 -------- BONDS (2.6%) BANKING AND CREDIT (0.9%) CS Holding, 4 7/8%,11/19/02 U.K. $ 1,995,000 $ 3,132 -------- FINANCIAL SERVICES (0.7%) PIV Financial Inv. Cayman, 4 1/2%, 12/1/00 H.K. 2,750,000 2,282 -------- TELECOMMUNICATIONS (1.0%) Comp de Inever Telecom, 7%, 3/3/98 Arg. 57,700 3,217 -------- Total Bonds 8,631 -------- MONEY MARKET INVESTMENTS (9.7%) FINANCIAL SERVICES (4.4%) American Express, 5.65%, 1/2/96 U.S. $15,000,000 $ 15,000 -------- FEDERAL GOVERNMENT & AGENCIES (0.8%) U.S. Treasury Notes, 8.875%, 2/15/96 U.S. 2,850,000 2,862 -------- INSURANCE (4.5%) Prudential, 5.65%, 1/2/96 U.S. 15,350,000 15,350 -------- Total Money Market Investments 33,212 -------- Total Investments $338,181 ========
* Non-Income Producing The Accompanying Notes are an Integral part of the Financial Statements 65 69 NORTHWESTERN MUTUAL SERIES FUND, INC. SELECT BOND PORTFOLIO SCHEDULE OF INVESTMENTS DECEMBER 31, 1995
MARKET VALUE PAR (000'S) ---------- -------- BONDS (83.6%) AIRLINES (1.3%) Delta Air Lines, Inc., 9 3/4%, 5/26/03 $ 546,000 $ 638 Delta Air Lines, Inc., 9 3/4%, 6/1/03 1,605,000 1,877 -------- Total 2,515 -------- AUTO RELATED (1.3%) General Motors Corporation, 8 4/5%, 3/1/21 1,250,000 1,567 Hertz Corp., 9.04%, 6/14/00 900,000 1,006 -------- Total 2,573 -------- BANKS (1.0%) Natwest Capital Corporation, 12 1/8%, 11/15/02 1,700,000 1,886 -------- BEVERAGES (2.9%) Coca-Cola Enterprises, Inc., 8%, 1/4/05 5,000,000 5,699 -------- CMO & LOAN-BACKED CERTIFICATES (15.8%) CIT RV Owner Trust, 6 1/4%, 1/15/11 2,188,935 2,214 Federal Home Loan Mortgage Corp., 7 1/4%, 4/15/18 2,425,000 2,453 Federal Home Loan Mortgage Corp., 7%, 3/15/07 1,875,000 1,921 Federal Home Loan Mortgage Corp., 6%, 7/15/07 3,900,000 3,908 Federal Home Loan Mortgage Corp., 6 1/4%, 7/25/07 3,850,000 3,908 Federal Home Loan Mortgage Corp., 6 3/4%, 12/25/23 3,500,000 3,452 Ford Motor Credit Grantor Trust, 5.9%, 10/15/00 2,918,090 2,934 Premier Auto Trust, 6.65%, 4/2/98 3,300,000 3,343 Rural Housing Trust, 6.33%, 4/1/26 2,660,522 2,636 Security Capital Industrial Trust, 7.3%, 5/15/01 2,000,000 2,017 World Omni Grantor Trust, 7.95%, 1/25/01 2,000,000 2,042 -------- Total 30,828 -------- CHEMICALS (1.1%) Dow Capital B.V., 8 1/2%, 6/8/10 1,800,000 2,152 -------- FEDERAL GOVERNMENT AND AGENCIES (27.2%) Federal Home Loan Mortgage Corp., 7%, 6/1/25 6,231,741 6,288 Government National Mortgage Assoc., 8 1/2%, 3/15/23 12,276 13 Government National Mortgage Assoc., 7%, 5/15/23 513,979 521 Government National Mortgage Assoc., 7 1/2%, 2/15/24 1,934,796 1,990 Government National Mortgage Assoc., 7%, 5/15/23 3,175,829 3,218 Government National Mortgage Assoc., 8 1/2%, 9/15/24 514,312 540 Government National Mortgage Assoc., 8 1/2%, 6/15/23 374,415 393 Government National Mortgage Assoc., 8 1/2%, 7/15/24 124,011 130 MARKET VALUE PAR (000'S) ---------- -------- FEDERAL GOVERNMENT AND AGENCIES (CONTINUED) Government National Mortgage Assoc., 8 1/2%, 2/15/25 $ 201,464 $ 212 Government National Mortgage Assoc., 7 1/2%, 1/15/24 912,938 939 Government National Mortgage Assoc., 7 1/2%, 1/15/24 936,665 963 Government National Mortgage Assoc., 8 1/2%, 11/15/24 326,485 343 Government National Mortgage Assoc., 8 1/2%, 11/15/24 342,126 359 Government National Mortgage Assoc., 8 1/2%, 8/15/24 409,502 430 Government National Mortgage Assoc., 8 1/2%, 8/15/24 327,513 344 Government National Mortgage Assoc., 7 1/2%, 6/15/24 1,717,829 1,767 Government National Mortgage Assoc., 8 1/2%, 2/15/25 154,084 162 Government National Mortgage Assoc., 8 1/2%, 9/15/24 387,325 407 Government National Mortgage Assoc., 8 1/2%, 11/15/24 351,439 369 Government National Mortgage Assoc., 8 1/2%, 4/15/21 306,455 322 Government National Mortgage Assoc., 8 1/2%, 9/15/21 225,579 237 Government National Mortgage Assoc., 8 1/2%, 3/15/22 320,087 336 Government National Mortgage Assoc., 7%, 6/15/23 2,913,178 2,952 U.S. Treasury, 7 1/8%, 2/15/23 8,200,000 9,366 U.S. Treasury, 7 1/2%, 11/15/24 1,500,000 1,802 U.S. Treasury, 7 5/8%, 2/15/25 10,000,000 12,219 U.S. Treasury, 6 7/8%, 8/15/25 1,000,000 1,128 U.S. Treasury, 7 1/8%, 9/30/99 5,000,000 5,298 -------- Total 53,048 -------- FINANCE COMPANIES (4.3%) Associates Corp. of North America, 6 7/8%, 1/15/97 2,200,000 2,231 Associates Corp. of North America, 7.95%, 2/15/10 1,500,000 1,737 Avco Financial Services, Inc., 5 7/8%, 10/15/97 2,200,000 2,214 Beneficial Corp., 6.86%, 11/19/97 2,200,000 2,250 -------- Total 8,432 -------- FOODS (0.8%) Nabisco Inc., 8%, 1/15/00 1,500,000 1,595 -------- FOREIGN GOVERNMENT BONDS (2.5%) Province of Manitoba, 7 3/4%, 7/17/16 2,000,000 2,252 Province of Quebec, 7 1/8%, 2/9/24 2,500,000 2,520 -------- Total 4,772 -------- MEDIA (6.2%) News America Holdings Inc., 7 1/2%, 3/1/00 3,500,000 3,672 News America Holdings Inc., 8 1/4%, 8/10/18 1,000,000 1,091
66 70 NORTHWESTERN MUTUAL SERIES FUND, INC. SELECT BOND PORTFOLIO SCHEDULE OF INVESTMENTS DECEMBER 31, 1995
MARKET VALUE PAR (000'S) ---------- -------- BONDS (CONTINUED) MEDIA (CONTINUED) Tele-Communications, Inc., 7 3/8%, 2/15/00 $2,000,000 $ 2,077 Tele-Communications, Inc., 7 7/8%, 8/1/13 2,000,000 2,067 Time Warner Entertainment Inc., 8 7/8%, 10/1/12 2,000,000 2,237 Time Warner Inc., 7 3/4%, 6/15/05 1,000,000 1,043 -------- Total 12,187 -------- OFFICE EQUIPMENT (1.6%) International Business Machines Corp., 6 3/8%, 11/1/97 3,000,000 3,049 -------- TOBACCO (2.6%) Philip Morris Companies, Inc., 9%, 5/15/98 1,750,000 1,873 Philip Morris Companies, Inc., 9 1/4%, 2/15/00 1,000,000 1,118 RJR Nabisco, Inc., 8 5/8%, 12/1/02 2,000,000 2,075 -------- Total 5,066 -------- UTILITY-ELECTRIC (15.0%) Cleveland Electric Illuminating Co., 7 3/8%, 6/1/03 1,000,000 945 DTE Energy Company, 5.41%, 5/1/97 4,000,000 3,988 Long Island Lighting Co., 9 5/8%, 7/1/24 1,500,000 1,537 Long Island Lighting Co., 7%, 3/1/04 3,250,000 3,127 Niagara Mohawk Power Corp., 5 7/8%, 9/1/02 1,000,000 883 Pacific Gas & Electric Co., 7 1/4%, 3/1/26 3,500,000 3,509 Pacific Gas & Electric Co., 5 3/8%, 8/1/98 2,600,000 2,574 Pennsylvania Power & Light Co., 5 1/2%, 4/1/98 3,000,000 2,980 PECO Energy Company, 7 1/2%, 1/15/99 1,500,000 1,571 MARKET VALUE PAR (000'S) ---------- -------- UTILITY-ELECTRIC (CONTINUED) PECO Energy Company, 7 3/4%, 03/1/23 $1,150,000 $ 1,203 Public Service Electric & Gas Co., 6 7/8%, 1/1/03 2,250,000 2,332 Texas Utilities Electric Co., 7 7/8%, 3/1/23 2,250,000 2,406 UNICOM Corp., 6 1/2%, 4/15/00 2,300,000 2,335 -------- Total 29,390 -------- Total Bonds 163,192 -------- MONEY MARKET INVESTMENTS (16.4%) CHEMICALS (2.3%) E.I. du Pont de Nemours & Co., 5.83%, 1/5/96 $4,600,000 $ 4,597 -------- FINANCE COMPANIES (2.5%) American General Finance Corp., 8.88%, 3/15/96 2,300,000 2,315 Transamerica Financial Corp., 8.55%, 6/15/96 2,500,000 2,534 -------- Total 4,849 -------- FINANCIAL SERVICES (2.3%) IBM Credit Corporation, 5.73%, 1/4/96 4,500,000 4,498 -------- FOODS (4.7%) Nestle Capital Corp., 5.63%, 1/4/96 9,200,000 9,196 -------- PRINTING & PUBLISHING (2.3%) Gannett Company Inc., 5.75%, 1/10/96 4,500,000 4,493 -------- TOBACCO (2.3%) Philip Morris Companies, Inc. 5.58%, 1/17/96 4,500,000 4,489 -------- Total Money Market Investments 32,122 -------- Total Investments $195,314 ========
The Accompanying Notes are an Integral Part of the Financial Statements 67 71 NORTHWESTERN MUTUAL SERIES FUND, INC. HIGH YIELD BOND PORTFOLIO SCHEDULE OF INVESTMENTS DECEMBER 31, 1995
MARKET VALUE PAR (000'S) ---------- ------- BONDS (96.4%) APPAREL, TEXTILES & FOOTWEAR (4.9%) Guess, Inc., 9 1/2%, 8/15/03 $ 500,000 $ 487 +Ithaca Industries, 11 1/8%, 12/15/02 700,000 280 PT Inti Indorayon Utama, 9 1/8%, 10/15/00 1,000,000 923 Tultex Corp., 10 5/8%, 3/15/05 1,000,000 1,018 ------- Total 2,708 ------- AUTO RELATED (1.7%) Foamex L.P., 11 1/4%, 10/1/02 1,000,000 960 ------- BANKS (3.7%) Banamex (Nassau Branch), 9 1/8%, 4/6/00 (144A) 500,000 467 Bancomer S.A., 8%, 7/7/98 (144A) 500,000 462 First Nationwide Holdings, 12 1/4%, 5/15/01 1,000,000 1,120 ------- Total 2,049 ------- BUILDING & CONSTRUCTION (2.9%) Primeco Inc., 12 3/4%, 3/1/05 1,500,000 1,568 ------- CABLE (7.9%) Adelphia Communications, 12 1/2%, 5/15/02 1,000,000 975 CAI Wireless Systems Inc., 12 1/4%, 9/15/02 1,000,000 1,066 ++Marcus Cable Operating, 13 1/2%, 8/1/04 1,000,000 741 Rogers Cablesystems Limited, 10%, 12/1/07 500,000 531 Rogers Communication Inc., 10 7/8%, 4/15/04 500,000 519 Groupe Videotron Ltd., 10 5/8%, 2/15/05 500,000 533 ------- Total 4,365 ------- CHEMICALS (3.8%) Acetex Corp., 9 3/4%, 10/1/03 (144A) 1,000,000 1,040 NL Industries, Inc., 11 3/4%, 10/15/03 1,000,000 1,068 ------- Total 2,108 ------- CONTAINERS (0.8%) Anchor Glass Container Corp., 10 1/4%, 6/30/02 500,000 412 ------- FINANCE COMPANIES (2.8%) Trizec Finance, 10 7/8%, 10/15/05 1,500,000 1,547 ------- FOOD SERVICE/LODGING (2.7%) Fleming Companies, Inc., 10 5/8%, 12/15/01 500,000 495 Host Marriott Corporation, 9 1/2%, 5/15/05 1,000,000 989 ------- Total 1,484 ------- FOODS (0.8%) +Beatrice Foods, Inc., 12%, 12/1/01 1,500,000 450 ------- MARKET VALUE PAR (000'S) ------- GAMING (10.2%) Aztar Corporation, 13 3/4%, 10/1/04 $1,000,000 $ 1,107 Bally's Grand, 10 3/8%, 12/15/03 1,000,000 1,015 Bally Park Place Funding, 9 1/4%, 3/15/04 500,000 505 GNF Corp., 10 5/8%, 4/1/03 1,500,000 1,387 Trump Hotels & Casino Resort, 15 1/2%, 6/15/05 1,000,000 1,070 Trump Plaza Funding, 10 7/8%, 6/15/01 500,000 518 ------- Total 5,602 ------- INSURANCE (1.9%) Reliance Group Holdings, 9 3/4%, 11/15/03 1,000,000 1,030 ------- LEISURE RELATED (1.8%) Samsonite Corporation, 11 1/8%, 7/15/05 1,000,000 980 ------- LODGING/RESORTS (3.7%) HMH Properties Inc., 9 1/2%, 5/15/05 1,000,000 1,021 John Q Hammons Hotels LP, 9 3/4%, 10/1/05 (144A) 1,000,000 1,004 ------- Total 2,025 ------- MOVIE THEATERS (1.5%) Cinemark USA, 12%, 6/1/02 750,000 806 ------- MISCELLANEOUS BASIC MATERIALS (0.7%) Tolmex S.A. De C.V., 8 3/8%, 11/1/03 500,000 400 ------- OFFICE EQUIPMENT (2.0%) United Stationer Supply Co., 12 3/4%, 5/1/05 1,000,000 1,080 ------- OIL & GAS INDEPENDENT (4.6%) Bridas Corporation, 12 1/2%, 11/15/99 1,000,000 992 Transtexas Gas, 11 1/2%, 6/15/02 1,500,000 1,549 ------- Total 2,541 ------- PAPER (7.2%) Crown Paper Co., 11%, 9/1/05 1,000,000 875 Indah Kiat International Finance, 12 1/2%, 6/15/06 1,000,000 993 Rainy River Forest Products, 10 3/4%, 10/15/01 500,000 549 Repap Wisconsin Incorporated, 9 1/4%, 2/1/02 500,000 475 Repap New Brunswick, 10 5/8%, 4/15/05 500,000 488 SD Warren Co., 12%, 12/15/04 500,000 550 ------- Total 3,930 ------- PRINTING & PUBLISHING (1.9%) Herff Jones Inc., 11%, 8/15/05 1,000,000 1,063 ------- PROFESSIONAL SERVICES (1.5%) Kinder Care Learning Centers, 10 3/8%, 6/1/01 800,000 842 ------- REFINING (1.1%) ++Transamerican Refining, 18 1/2%, 2/15/02 1,000,000 605 -------
68 72 NORTHWESTERN MUTUAL SERIES FUND, INC. HIGH YIELD BOND PORTFOLIO SCHEDULE OF INVESTMENTS DECEMBER 31, 1995
MARKET VALUE PAR (000'S) ---------- ------- BONDS (CONTINUED) RETAIL-FOOD (10.2%) Brunos Inc., 10 1/2%, 8/1/05 $1,000,000 $ 987 Grand Union Company, 12%, 9/1/04 1,000,000 865 Pathmark Stores, 11 5/8%, 6/15/02 1,500,000 1,508 Penn Traffic Company, 9 5/8%, 4/15/05 1,000,000 775 Pueblo Xtra International, 9 1/2%, 8/1/03 500,000 468 Ralphs Grocery Co., 11%, 6/15/05 1,000,000 975 ------- Total 5,578 ------- SOAPS & TOILETRIES (1.9%) American Safety Razor Co., 9 7/8%, 8/1/05 1,000,000 1,015 ------- STEEL (1.6%) Algoma Steel, 12 3/8% 7/15/05 1,000,000 897 ------- TELECOMMUNICATIONS (4.0%) ++Bell Cablemedia Inc., 11 7/8%, 9/15/05 (144A) 1,778,600 1,121 ++Telewest PLC, 11%, 10/1/07 1,750,000 1,052 ------- Total 2,173 ------- TRUCKING-SHIPPING (3.8%) Gearbulk Holding Ltd., 11 1/4%, 12/1/04 1,000,000 1,067 Stena AB, 10 1/2%, 12/15/05 1,000,000 1,020 ------- Total 2,087 ------- UTILITY-GAS (2.0%) Petroleum Heat & Power, 12 1/4%, 2/1/05 1,000,000 1,115 ------- MARKET PAR/ VALUE SHARES (000'S) ---------- ------- UTILITY-PROJECT (2.8%) CE Casecnan Water & Energy, Inc. 11.95%, 11/15/10 (144A) $1,000,000 $ 1,010 California Energy, 9 7/8%, 6/30/03 500,000 520 ------- Total 1,530 ------- Total Bonds 52,950 ------- COMMON STOCK (0.3%) DRUGS (0.1%) *Thrifty Payless Holdings 9,500 $ 40 ------- PAPER (0.2%) *SDW Holdings Corporation -- Warrants 20,000 100 ------- Total Common Stock 140 ------- PREFERRED STOCK (1.1%) PAPER (1.1%) SD Warren Co., 14%, 12/15/06 20,000 $ 630 ------- Total Preferred Stock 630 ------- MONEY MARKET INVESTMENTS (2.2%) CHEMICALS (1.8%) E.I. du Pont de Nemours & Co., 5.83%, 1/5/96 $1,000,000 $ 999 ------- FINANCIAL SERVICES (0.4%) IBM Credit Corporation, 5.73%, 1/4/96 200,000 200 ------- Total Money Market Investments 1,199 ------- Total Investments $54,919 =======
* Non-Income Producing. + Defaulted Security. ++ Denotes deferred interest security that receives no coupon payments until a predetermined date at which time the stated coupon rate becomes effective. The Accompanying Notes are an Integral Part of the Financial Statements 69 73 NORTHWESTERN MUTUAL SERIES FUND, INC. MONEY MARKET PORTFOLIO SCHEDULE OF INVESTMENTS DECEMBER 31, 1995
MARKET VALUE PAR (000'S) ---------- -------- COMMERCIAL PAPER (96.5%) BEVERAGES (4.5%) Pepsico, Inc., 5.75%, 9/6/96 $6,000,000 $ 5,999 -------- DRUGS (4.7%) American Home Products Corp., 5.7%, 1/17/96 6,200,000 6,184 -------- ELECTRICAL EQUIPMENT (9.8%) Emerson Electric Co., 5.85%, 1/3/96 6,500,000 6,498 General Electric Company, 5.76%, 1/12/96 6,400,000 6,389 -------- Total 12,887 -------- FINANCIAL SERVICES (3.8%) IBM Credit Corporation, 5.71%, 1/11/96 5,000,000 4,992 -------- FINANCE COMPANIES (23.1%) American General Finance Corp., 5.71%, 1/24/96 6,200,000 6,177 AT&T Capital Corp., 5.71%, 1/26/96 6,100,000 6,076 Commercial Credit Company, 5.75%, 1/25/96 3,500,000 3,487 Commercial Credit Group Inc., 5.81%, 1/17/96 2,500,000 2,493 Ford Motor Credit Company, 5.68%, 1/31/96 6,100,000 6,071 Transamerica Financial Corp., 5.75%, 1/12/96 6,100,000 6,089 -------- Total 30,393 -------- FOODS (0.9%) Cargill Incorporated, 5.75%, 1/2/96 1,200,000 1,200 -------- LUMBER (4.9%) Weyerhaeuser Mortgage Company, 5.65%, 1/8/96 6,500,000 6,493 -------- OFFICE EQUIPMENT (5.9%) International Business Machines Corp., 5.75%, 1/11/96 1,300,000 1,298 Xerox Credit Corporation, 5.7%, 1/8/96 6,500,000 6,493 -------- Total 7,791 -------- MARKET VALUE PAR (000'S) ---------- -------- PRINTING & PUBLISHING (4.8%) Gannett Company Inc., 5.82%, 1/24/96 $6,300,000 $ 6,277 -------- RETAIL-GENERAL (4.7%) J.C. Penney Company, Inc., 5.66%, 2/9/96 6,200,000 6,162 -------- SOAPS & TOILETRIES (4.8%) Colgate-Palmolive Co., 5.7%, 1/23/96 6,300,000 6,278 -------- TOBACCO (8.8%) BAT Capital Corporation, 5.75%, 1/17/96 5,400,000 5,386 Philip Morris Capital Corp., 5.67%, 2/2/96 6,300,000 6,268 -------- Total 11,654 -------- TELECOMMUNICATIONS (1.5%) Motorola, Inc., 5.75%, 1/3/96 2,000,000 1,999 -------- UTILITY-ELECTRIC (9.4%) National Rural Utility Finance Corp., 5.66%, 2/23/96 6,300,000 6,247 Southern California Edison Co., 5.69%, 1/19/96 6,100,000 6,083 -------- Total 12,330 -------- UTILITY-TELEPHONE (4.9%) Bellsouth Telecommunication, 5.75%, 1/9/96 6,500,000 6,492 -------- Total Commercial Paper 127,131 -------- ASSET-BACKED SECURITIES (3.5%) AUTO RELATED (3.5%) Carco Auto Loan Master Trust, 5.905%, 10/16/00 (Variable rate; puttable; coupon indexed to one month Commercial Paper rate plus 7.5 basis points; reset monthly) 4,550,000 $ 4,550 -------- Total Asset-Backed Securities 4,550 -------- Total Investments $131,681 ========
The Accompany Notes are an Integral Part of the Financial Statements 70 74 NORTHWESTERN MUTUAL SERIES FUND, INC. BALANCED PORTFOLIO SCHEDULE OF INVESTMENTS DECEMBER 31, 1995
MARKET VALUE SHARES (000'S) ----------- ---------- COMMON STOCK (50.8%) AEROSPACE (1.2%) Boeing Company 78,400 $ 6,145 E G & G, Inc. 12,000 291 General Dynamics Corporation 14,400 851 Lockheed Martin Corporation 45,861 3,623 Loral Corporation 39,200 1,387 McDonnell Douglas Corporation 25,900 2,383 Northrop Corporation 11,300 723 Raytheon Company 55,800 2,637 Rockwell International Corp. 49,700 2,628 TRW Inc. 14,900 1,155 United Technologies Corp. 28,200 2,675 ---------- Total 24,498 ---------- AIRLINES (0.1%) *AMR Corporation 17,500 1,299 Delta Air Lines, Inc. 11,600 857 Southwest Airlines Co. 32,900 765 *USAir Group, Inc. 14,200 188 ---------- Total 3,109 ---------- APPAREL, TEXTILES AND FOOTWEAR (0.2%) Brown Group, Inc. 4,100 58 *Fruit of the Loom Incorporated 17,400 424 Liz Claiborne, Inc. 17,200 477 Nike, Inc. 32,700 2,277 Reebok International Ltd. 17,900 506 Russell Corp. 8,900 247 Springs Industries, Inc. 4,600 190 Stride Rite Corp. 11,300 85 VF Corporation 14,600 770 ---------- Total 5,034 ---------- AUTO & TRUCKS (1.0%) Chrysler Corporation 87,500 4,845 Ford Motor Company 245,900 7,131 General Motors Corporation 171,100 9,047 *Navistar International Corp. 17,170 180 PACCAR Incorporated 8,895 375 ---------- Total 21,578 ---------- AUTO RELATED (0.3%) Cooper Tire & Rubber Company 19,100 470 Dana Corporation 23,200 679 Eaton Corporation 17,800 955 Echlin Inc. 13,600 496 Genuine Parts Company 28,150 1,154 Goodyear Tire & Rubber Company 34,900 1,584 ITT Industries Inc. 26,500 636 Snap-On Incorporated 9,200 416 ---------- Total 6,390 ---------- BANKS (3.3%) Banc One Corporation 90,282 3,408 Bank of Boston Corporation 25,600 1,184 Bank of New York Company Inc. 44,000 2,145 BankAmerica Corporation 85,700 5,549 Bankers Trust New York Corp. 17,900 1,190 Barnett Banks Inc. 22,200 1,310 Boatmans Bancshares, Inc. 28,800 1,177 Chase Manhattan Corporation 39,900 2,419 Chemical Banking Corporation 57,700 3,390 MARKET VALUE SHARES (000'S) ----------- ---------- BANKS (CONTINUED) Citicorp 97,300 $ 6,543 Comerica, Inc. 26,200 1,051 Corestates Financial Corp. 31,900 1,208 First Bank System Inc. 31,000 1,538 First Chicago NBD Corp. 72,705 2,872 First Fidelity Bancorporation 18,300 1,379 First Interstate Bancorp 17,400 2,375 First Union Corporation 39,300 2,186 Fleet Financial Group Inc. 58,619 2,389 KeyCorp 52,100 1,889 Mellon Bank Corporation 33,550 1,803 J.P. Morgan & Company, Inc. 43,000 3,451 National City Corp. 33,700 1,116 NationsBank Corp. 62,100 4,324 Norwest Corporation 80,800 2,666 PNC Financial Corp. 52,700 1,700 P P & L Resources Inc. 36,200 905 Republic New York Corporation 12,800 795 Suntrust Banks Inc. 26,100 1,788 U.S. Bancorp of Oregon 22,500 757 Wachovia Corporation 39,200 1,793 Wells Fargo & Company 11,000 2,376 ---------- Total 68,676 ---------- BEVERAGES (1.9%) Anheuser-Busch Companies Inc. 58,500 3,912 Brown-Forman Corp. 15,800 577 Coca-Cola Company 288,700 21,436 Adolph Coors Co. 8,800 195 Pepsico Inc. 180,300 10,074 Seagram Company Ltd. 85,200 2,950 ---------- Total 39,144 ---------- BUILDING & CONSTRUCTION (0.2%) Centex Corporation 6,400 222 Crane Co. 7,000 258 Kaufman & Broad Home Corp. 7,400 110 Masco Corporation 36,300 1,139 *Owens Corning Fiberglas Corp. 11,600 521 Pulte Corporation 6,200 208 Sherwin-Williams Company 19,500 795 ---------- Total 3,253 ---------- BUILDING-FOREST PRODUCTS (0.3%) Boise Cascade Corporation 10,900 377 Champion International 22,100 928 Georgia-Pacific Corp. 20,800 1,427 Louisiana Pacific Corporation 24,700 599 Potlatch Corporation 6,700 268 Weyerhaeuser Company 46,500 2,011 ---------- Total 5,610 ---------- CHEMICALS (1.5%) Air Products & Chemicals, Inc. 25,600 1,350 Dow Chemical Company 61,600 4,335 E.I. du Pont de Nemours & Company 127,000 8,874 Eastman Chemical Company 18,575 1,163 Ecolab, Inc. 14,700 441 *FMC Corporation 8,400 568 Freeport McMoRan Copper & Gold Inc. 46,600 1,311
71 75 NORTHWESTERN MUTUAL SERIES FUND, INC. BALANCED PORTFOLIO SCHEDULE OF INVESTMENTS DECEMBER 31, 1995
MARKET VALUE SHARES (000'S) ----------- ---------- COMMON STOCK (CONTINUED) CHEMICALS (CONTINUED) B.F. Goodrich Company 5,900 $ 402 W.R. Grace & Co. 21,700 1,283 Great Lakes Chemical 14,800 1,066 Hercules Incorporated 25,500 1,438 Mallinckrodt Group 17,500 637 Monsanto Company 26,400 3,234 PPG Industries Inc. 46,400 2,123 Praxair, Inc. 31,700 1,066 Rohm & Haas Company 15,500 998 Union Carbide Corporation 31,400 1,178 ---------- Total 31,467 ---------- CHEMICALS-SPECIALITY (0.2%) Avery Dennison Corp. 12,200 612 Engelhard Corp. 32,800 713 Morton International, Inc. 33,900 1,216 Nalco Chemical Company 15,500 467 Sigma-Aldrich Corp. 11,400 564 ---------- Total 3,572 ---------- COAL, GAS & PIPELINE (0.1%) Eastern Enterprises 4,600 162 NACCO Industries, Inc. 2,100 117 Sonat Inc. 19,800 705 ---------- Total 984 ---------- CONTAINERS (0.1%) Ball Corporation 6,900 190 Bemis Company, Inc. 11,800 302 *Crown Cork & Seal Company, Inc. 20,600 860 ---------- Total 1,352 ---------- DIVERSIFIED (1.1%) Allied Signal Inc. 64,800 3,078 Corning Inc. 52,600 1,683 Dial Corp. 21,300 631 ITT Corp. 26,500 1,404 Loews Corp. 27,000 2,116 Minnesota Mining & Manufacturing Co. 96,200 6,373 National Service Industries, Inc. 11,100 359 Ogden Corporation 11,200 239 *Teledyne, Inc. 12,700 325 Tenneco Inc. 41,400 2,054 Textron Inc. 19,500 1,316 Tyco Laboratories, Inc. 35,000 1,247 Whitman Corporation 24,000 558 Worthington Industries 20,800 433 ---------- Total 21,816 ---------- DRUGS (3.3%) *Alza Corp. 18,900 468 American Home Products Corp. 70,900 6,877 *Amgen Inc. 60,600 3,598 Bristol-Myers Squibb Company 116,100 9,970 Eli Lilly & Company 126,200 7,099 Merck & Co., Inc. 283,100 18,614 Pharmacia & Upjohn Inc. 115,330 4,469 Pfizer Inc. 144,600 9,110 MARKET VALUE SHARES (000'S) ----------- ---------- DRUGS (CONTINUED) Schering-Plough Corporation 85,200 $ 4,665 Warner-Lambert Company 30,900 3,001 ---------- Total 67,871 ---------- ELECTRICAL EQUIPMENT (1.8%) Emerson Electric Co. 51,400 4,202 General Electric Company 387,800 27,922 W.W. Grainger, Inc. 11,600 769 Honeywell Inc. 29,100 1,415 Raychem Corp. 10,000 569 Thomas & Betts Corporation 4,500 332 Westinghouse Electric Corp. 89,800 1,482 ---------- Total 36,691 ---------- ELECTRONICS (1.0%) *Advanced Micro Devices, Inc. 23,800 393 AMP Incorporated 49,836 1,912 *Applied Materials Inc. 40,400 1,591 Harris Corporation 8,900 486 Intel Corp. 188,500 10,697 *LSI Logic 29,300 960 Micron Technology 47,200 1,870 *National Semiconductor Corp. 28,300 630 Perkin-Elmer Corporation 9,600 362 Tektronix, Inc. 7,600 373 Texas Instruments Incorporated 43,000 2,225 ---------- Total 21,499 ---------- ENGINEERING & CONSTRUCTION (0.1%) Fluor Corporation 18,900 1,247 ---------- ENVIRONMENTAL CONTROL (0.3%) Browning-Ferris Industries Inc. 48,700 1,437 Johnson Controls Inc. 9,400 646 Laidlaw Transportation Limited 67,300 690 Millipore Corp. 10,300 424 Safety-Kleen Corp. 13,200 206 WMX Technologies, Inc. 111,000 3,316 ---------- Total 6,719 ---------- FEDERAL GOVERNMENT AND AGENCIES (0.5%) Federal Home Loan Mortgage Corp. 41,400 3,457 Federal National Mortgage Assoc. 62,500 7,758 ---------- Total 11,215 ---------- FINANCIAL SERVICES (1.0%) American Express Company 111,600 4,617 Beneficial Corp. 12,100 564 Dean Witter, Discover & Co. 38,650 1,817 Household International Inc. 22,300 1,318 MBNA Corp. 33,950 1,252 Marsh & McLennan Companies, Inc. 16,600 1,473 Merrill Lynch & Co., Inc. 40,300 2,055 Morgan Stanley Group Inc. 17,600 1,419 Salomon Inc. 24,400 866 Transamerica Corporation 15,700 1,144 Travelers Group Inc. 73,146 4,599 ---------- Total 21,124 ----------
72 76 NORTHWESTERN MUTUAL SERIES FUND, INC. BALANCED PORTFOLIO SCHEDULE OF INVESTMENTS DECEMBER 31, 1995
MARKET VALUE SHARES (000'S) ----------- ---------- COMMON STOCK (CONTINUED) FOOD SERVICE/LODGING (0.5%) *Darden Restaurant Inc. 36,200 $ 430 *Harrah's Entertainment 23,500 570 Hilton Hotels Corporation 11,000 677 Luby's Cafeterias, Inc. 5,300 118 Marriott International 28,700 1,098 McDonald's Corporation 159,100 7,179 *Ryan's Family Steak Houses, Inc. 12,200 85 *Shoney's Inc. 9,500 97 Wendy's International, Inc. 23,400 497 ---------- Total 10,751 ---------- FOODS (1.6%) Archer Daniels Midland Company 124,084 2,234 CPC International Corp. 33,400 2,292 Campbell Soup Company 57,100 3,426 ConAgra Inc. 56,200 2,318 General Mills, Inc. 36,300 2,096 H.J. Heinz Company 83,650 2,771 Hershey Foods Corp. 17,800 1,157 Kellogg Company 50,200 3,878 Pioneer Hi-Bred International 19,200 1,068 Quaker Oats Company 30,700 1,059 Ralston Purina Group 23,800 1,485 Sara Lee Corporation 109,800 3,500 Unilever, N.V. 36,600 5,152 Wm. Wrigley Jr. Company 26,600 1,397 ---------- Total 33,833 ---------- HOSPITAL SUPPLIES (2.1%) Abbott Laboratories Inc. 181,700 7,586 Allergan Incorporated 14,700 478 Allergan Incorporated -- Rights 463 0 C.R. Bard, Inc. 12,700 410 Bausch & Lomb Inc. 13,100 519 Baxter International Inc. 63,400 2,655 Becton, Dickinson & Company 15,100 1,133 *Beverly Enterprises, Inc. 22,500 239 *Biomet, Inc. 26,400 472 *Boston Scientific Corp. 37,100 1,818 Columbia/HCA Healthcare Corp. 101,600 5,156 *Community Psychiatric Centers 10,000 123 Humana, Inc. 37,000 1,013 Johnson & Johnson 147,700 12,647 Manor Care, Inc. 14,300 501 Medtronic, Incorporated 52,900 2,956 St. Jude Medical, Inc. 16,050 690 *Tenet Healthcare Corp. 45,800 950 United Healthcare Corp. 39,700 2,600 U.S. HealthCare Incorporated 35,200 1,637 U.S. Surgical Corporation 13,000 278 ---------- Total 43,861 ---------- HOUSEHOLD FURNITURE/APPLIANCES (0.3%) Armstrong World Industries Inc. 8,500 527 Black & Decker Corporation 19,600 691 Maytag Corporation 24,600 498 Newell Co. 36,200 937 Premark International, Inc. 14,500 734 Rubbermaid, Inc. 36,200 923 MARKET VALUE SHARES (000'S) ----------- ---------- HOUSEHOLD FURNITURE/APPLIANCES (CONTINUED) Stanley Works 10,200 $ 525 Whirlpool Corporation 16,900 900 ---------- Total 5,735 ---------- INSURANCE (1.6%) Aetna Life & Casualty Company 25,900 1,794 Alexander & Alexander Services 10,100 192 Allstate Corporation 102,647 4,221 American General Corporation 46,900 1,636 American International Group, Inc. 108,550 10,041 CIGNA Corporation 16,600 1,714 Chubb Corporation 19,900 1,925 General Re Corporation 18,800 2,914 ITT Hartford Group 26,500 1,282 Jefferson-Pilot Corp. 16,350 760 Lincoln National Corporation 23,800 1,279 Providian Corporation 21,800 888 SAFECO Inc. 28,800 994 St. Paul Companies, Inc. 19,400 1,079 Torchmark Corporation 16,400 742 UNUM Corporation 16,600 913 USF&G Corp. 25,600 432 USLIFE Corporation 7,850 235 ---------- Total 33,041 ---------- LEISURE RELATED (0.8%) *3COM Corp. 34,400 1,604 *Bally Entertainment Corporation 10,800 151 Brunswick Corporation 21,900 526 Walt Disney Company 119,200 7,033 Fleetwood Enterprises, Inc. 10,500 270 Handlemann Co. 7,700 44 Hasbro Inc. 20,100 623 *King World Productions, Inc. 8,400 327 Mattel, Inc. 50,768 1,561 Outboard Marine Corporation 4,600 94 *Viacom Incorporated 82,656 3,792 ---------- Total 16,025 ---------- MACHINERY (0.6%) Briggs & Stratton Corporation 6,900 299 Caterpillar Inc. 45,500 2,673 Cincinnati Milacron Inc. 7,800 205 Cooper Industries, Inc. 24,600 904 Cummins Engine Company, Inc. 9,300 344 Deere & Company 59,500 2,097 Dover Corporation 26,000 959 Foster Wheeler Corporation 9,200 391 General Signal Corporation 10,900 353 Giddings & Lewis Company 7,900 130 Harnischfeger Industries, Inc. 11,000 366 Illinois Tool Works Inc. 26,900 1,587 Ingersoll-Rand Company 24,200 850 Pall Corporation 26,166 703 Parker-Hannifin Corporation 16,900 579 Timken Company 7,100 272 TRINOVA Corp. 6,600 189 *Varity Corporation 9,300 345 ---------- Total 13,246 ----------
73 77 NORTHWESTERN MUTUAL SERIES FUND, INC. BALANCED PORTFOLIO SCHEDULE OF INVESTMENTS DECEMBER 31, 1995
MARKET VALUE SHARES (000'S) ----------- ---------- COMMON STOCK (CONTINUED) MEDIA (0.4%) Capital Cities/ABC, Inc. 35,200 $ 4,343 Comcast Corp. 54,850 998 *Tele-Communications, Inc. 149,400 2,969 ---------- Total 8,310 ---------- METALS & MINING (0.6%) Alcan Aluminum Limited 51,600 1,606 Aluminum Co. of America 40,900 2,163 ASARCO, Inc. 9,700 310 Barrick Gold Corporation 80,900 2,134 Cyprus Minerals Co. 21,200 554 Echo Bay Mines Limited Co. 25,800 268 Homestake Mining Company 31,600 494 Inco Limited 27,200 904 Newmont Mining Corporation 19,689 891 Phelps Dodge Corporation 15,900 990 Placer Dome Incorporated 54,700 1,320 Reynolds Metals Company 14,500 821 Santa Fe Pacific Gold Corporation 30,040 364 ---------- Total 12,819 ---------- OFFICE EQUIPMENT (2.1%) *Amdahl Corporation 27,200 231 Apple Computer, Inc. 27,700 883 *Cabletron Systems Inc. 16,400 1,328 *Cisco Systems Incorporated 62,100 4,634 *Compaq Computer Corporation 60,500 2,904 *Cray Research, Inc. 5,800 144 *Data General Corporation 8,500 117 *Digital Equipment Corporation 33,600 2,155 Hewlett-Packard Company 117,100 9,807 *Intergraph Corp. 10,500 165 International Business Machines Corp. 130,200 11,946 Moore Corporation Ltd. 22,900 427 Pitney Bowes Inc. 34,700 1,631 *Silicon Graphics 36,300 998 *Sun Microsystems Inc. 43,800 1,998 *Tandem Computers Inc. 26,600 283 *Unisys Corporation 39,200 221 Xerox Corporation 24,600 3,370 ---------- Total 43,242 ---------- OFFICE EQUIPMENT-SERVICES (1.4%) Alco Standard Corporation 25,500 1,163 Autodesk, Inc. 10,800 370 Automatic Data Processing, Inc. 32,900 2,443 *Ceridian Corp. 15,100 623 Computer Associates International Inc. 54,950 3,125 *Computer Sciences Corp. 12,700 892 First Data Corporation 50,400 3,371 *Microsoft Corporation 134,100 11,767 *Novell, Inc. 84,500 1,204 *Oracle Corporation 99,200 4,204 Shared Medical Systems Corp. 5,300 288 ---------- Total 29,450 ---------- OIL & GAS-DOMESTIC (0.8%) Amerada Hess Corp. 21,300 1,129 Ashland Inc. 14,600 513 Atlantic Richfield Company 36,800 4,076 MARKET VALUE SHARES (000'S) ----------- ---------- OIL & GAS-DOMESTIC (CONTINUED) Burlington Resource Inc. 29,000 $ 1,138 Coastal Corp. 24,000 894 Kerr-McGee Corporation 11,900 756 Louisiana Land & Exploration Co. 7,700 330 Occidental Petroleum Corporation 72,800 1,556 *Oryx Energy Company 23,700 317 Pennzoil Company 10,600 448 Phillips Petroleum Company 60,000 2,048 *Santa Fe Energy Resources, Inc. 20,700 199 Sun Company, Inc. 17,300 474 Unocal Corp. 56,400 1,643 ---------- Total 15,521 ---------- OIL & GAS-INTERNATIONAL (3.4%) Amoco Company 113,700 8,172 Chevron Corp. 149,300 7,838 Exxon Corporation 284,400 22,788 Mobil Corporation 90,600 10,147 Royal Dutch Petroleum Co., ADR 122,700 17,316 Texaco Inc. 59,500 4,671 ---------- Total 70,932 ---------- OIL FIELD SERVICES (0.4%) Baker Hughes Inc. 32,300 787 Dresser Industries, Inc. 41,800 1,019 Halliburton Company 26,100 1,321 Helmerich & Payne, Inc. 5,700 170 McDermott International, Inc. 12,400 273 *Rowan Companies, Inc. 19,300 191 Schlumberger Limited 55,400 3,836 *Western Atlas Inc. 12,200 616 ---------- Total 8,213 ---------- PAPER (0.6%) Federal Paper Board Co. 10,500 545 International Paper Company 58,300 2,208 James River Corp. of Virginia 18,900 456 Kimberly-Clark Corporation 63,766 5,277 Mead Corp. 12,300 643 *Stone Container Corporation 21,900 315 Temple-Inland Inc. 12,800 565 Union Camp Corporation 16,100 767 Westvaco Corporation 23,150 642 Willamette Industries Inc. 12,600 709 ---------- Total 12,127 ---------- PHOTO & OPTICAL (0.3%) Eastman Kodak Company 78,300 5,246 Polaroid Corporation 10,300 488 ---------- Total 5,734 ---------- PRINTING & PUBLISHING (0.8%) American Greetings Corp. 17,000 470 Deluxe Corp. 18,900 548 R.R. Donnelley & Sons Company 35,100 1,382 Dow Jones & Company, Inc. 22,200 885 Dun & Bradstreet Corporation 38,800 2,512 Gannett Company Inc. 32,100 1,970 Harcourt General 16,600 695 John H. Harland Company 7,000 146 Jostens, Inc. 8,800 213
74 78 NORTHWESTERN MUTUAL SERIES FUND, INC. BALANCED PORTFOLIO SCHEDULE OF INVESTMENTS DECEMBER 31, 1995
MARKET VALUE SHARES (000'S) ----------- ---------- COMMON STOCK (CONTINUED) PRINTING & PUBLISHING (CONTINUED) Knight-Ridder Inc. 11,200 $ 700 McGraw-Hill Companies Inc. 11,400 993 Meredith Corporation 6,300 264 New York Times Company 22,200 658 Time Warner Inc. 88,400 3,348 Times Mirror Company 25,700 871 Tribune Company 14,900 911 ---------- Total 16,566 ---------- PROFESSIONAL SERVICES (0.2%) H & R Block, Inc. 24,000 972 *CUC International Inc. 39,850 1,360 Interpublic Group of Cos. Inc. 17,900 776 Service Corporation International 23,700 1,043 ---------- Total 4,151 ---------- RAILROADS (0.6%) Burlington Northern Santa Fe Co. 32,533 2,538 CSX Corporation 48,200 2,199 Conrail Incorporated 17,900 1,253 Norfolk Southern Corporation 30,000 2,381 Union Pacific Corporation 47,000 3,102 ---------- Total 11,473 ---------- RETAIL-FOOD (0.4%) Albertson's, Inc. 58,200 1,913 American Stores Co. 34,000 910 Fleming Companies, Inc. 8,600 177 Giant Food Inc. 13,600 428 Great Atlantic & Pacific Tea Co., Inc. 8,700 200 Kroger Company 28,100 1,054 Supervalu Inc. 15,600 491 Sysco Corporation 41,700 1,355 Winn-Dixie Stores, Inc. 34,600 1,276 ---------- Total 7,804 ---------- RETAIL-GENERAL (2.0%) Charming Shoppes Incorporated 23,600 68 Circuit City Stores, Inc. 22,200 613 Dayton Hudson Corporation 16,400 1,230 Dillard Department Stores, Inc. 25,900 738 *Federated Department Stores, Inc. 46,300 1,273 The Gap, Inc. 33,000 1,386 Home Depot, Inc. 109,066 5,222 K Mart Corporation 105,000 761 The Limited Inc. 81,800 1,421 Longs Drug Stores Corp. 4,700 225 Lowe's Companies, Inc. 36,700 1,229 May Department Stores Company 56,900 2,404 Melville Corporation 24,000 738 Mercantile Stores Company 8,400 389 Nordstrom, Inc. 18,800 761 J.C. Penney Company, Inc. 52,000 2,477 Pep Boys - Manny, Moe & Jack 14,100 361 *Price/Costco, Inc. 44,651 681 Rite Aid Corporation 19,200 658 Sears, Roebuck & Company 89,200 3,479 TJX Companies, Inc. 16,600 313 Tandy Corporation 14,900 618 *Toys "R" Us 63,300 1,377 MARKET VALUE SHARES (000'S) ----------- ---------- RETAIL-GENERAL (CONTINUED) Wal-Mart Stores, Inc. 525,900 $ 11,767 Walgreen Company 56,300 1,682 *Woolworth Corp. 30,300 394 ---------- Total 42,265 ---------- SAVINGS & LOAN (0.1%) H.F. Ahmanson & Company 26,800 710 Golden West Financial Corp. 13,400 740 Great Western Financial Corp. 31,100 793 ---------- Total 2,243 ---------- SOAPS & TOILETRIES (1.2%) Alberto-Culver Company 6,300 217 Avon Products, Inc. 15,700 1,183 The Clorox Company 12,200 874 Colgate-Palmolive Co. 33,300 2,339 Gillette Company 101,500 5,291 International Flavors & Fragrances, Inc. 25,500 1,224 The Procter & Gamble Company 157,400 13,064 ---------- Total 24,192 ---------- STEEL (0.2%) *Armco Inc. 24,300 143 Bethlehem Steel Corporation 25,300 354 Inland Steel Industries, Inc. 11,100 279 Nucor Corp. 20,000 1,143 USX-Marathon Group 68,000 1,326 USX-U S Steel Group Inc. 18,700 575 ---------- Total 3,820 ---------- TELECOMMUNICATIONS (1.7%) AT&T Corporation 363,100 23,511 *Andrew Corporation 8,850 339 *DSC Communications Corp. 26,300 970 Motorola, Inc. 135,000 7,695 Northern Telecom Limited 58,100 2,498 Scientific-Atlanta, Inc. 17,600 264 *Tellabs Inc. 20,200 747 ---------- Total 36,024 ---------- TOBACCO (1.0%) American Brands Inc. 43,200 1,928 Philip Morris Companies, Inc. 192,300 17,403 UST Incorporated 44,700 1,492 ---------- Total 20,823 ---------- TRANSPORTATION-MISCELLANEOUS (0.0%) Pittston Services Group 9,500 298 ---------- TRUCKING-SHIPPING (0.1%) Caliber Systems Inc. 8,900 435 Consolidated Freightways, Inc. 9,900 262 *Federal Express Corp. 12,900 953 Ryder System, Inc. 18,000 446 Yellow Corp. 6,400 79 ---------- Total 2,175 ---------- UTILITY-ELECTRIC (1.9%) American Electric Power Co. Inc. 42,600 1,725 Baltimore Gas & Electric Co. 33,800 963 Carolina Power & Light Company 35,600 1,228 Central & South West Corporation 43,900 1,224
75 79 NORTHWESTERN MUTUAL SERIES FUND, INC. BALANCED PORTFOLIO SCHEDULE OF INVESTMENTS DECEMBER 31, 1995
MARKET VALUE SHARES (000'S) ----------- ---------- COMMON STOCK (CONTINUED) UTILITY-ELECTRIC (CONTINUED) Cinergy Corporation 35,705 $ 1,093 Consolidated Edison Co. of New York 53,800 1,722 DTE Energy Company 33,600 1,159 Dominion Resources Inc. 39,700 1,638 Duke Power Company 46,900 2,222 Entergy Corporation 52,100 1,524 FPL Group, Inc. 42,400 1,966 General Public Utilities 26,600 904 Houston Industries Incorporated 60,100 1,457 Niagara Mohawk Power Corporation 33,000 318 Northern States Power Company 15,500 761 Ohio Edison Company 34,900 820 PECO Energy Company 50,800 1,530 Pacific Enterprises 19,400 548 Pacific Gas & Electric Co. 97,200 2,758 PacifiCorp 65,100 1,383 Public Service Enterprise Group, Inc. 56,000 1,715 SCECorp 102,100 1,812 Southern Company 152,400 3,753 Texas Utilities Company 51,700 2,126 UNICOM Corp. 49,100 1,608 Union Electric Company 23,400 977 ---------- Total 38,934 ---------- UTILITY-GAS (0.3%) *Columbia Gas System Inc. 11,600 509 Consolidated Natural Gas Co. 21,400 971 Enron Corp. 57,700 2,200 ENSERCH Corporation 15,700 255 Nicor Inc. 11,600 319 Noram Energy Corporation 28,400 252 ONEOK, Inc. 6,200 142 Panhandle Eastern Corporation 34,300 956 Peoples Energy Corporation 8,000 254 Williams Companies Inc. 23,400 1,027 ---------- Total 6,885 ---------- UTILITY-TELEPHONE (3.3%) *Airtouch Communications 113,100 3,195 ALLTEL Corporation 43,200 1,274 Ameritech Corporation 126,900 7,487 Bell Atlantic Corporation 99,900 6,681 Bellsouth Corporation 227,300 9,888 GTE Corporation 222,000 9,768 MCI Communications Corporation 155,200 4,055 NYNEX Corp. 97,800 5,281 Pacific Telesis Group 98,100 3,299 SBC Communications Incorporated 139,500 8,021 Sprint Corporation 79,800 3,182 U S West Inc. 107,800 3,854 *U S West Media Group 107,800 2,048 ---------- Total 68,033 ---------- Total Common Stock 1,051,375 ---------- PREFERRED STOCK (0.00%) DIVERSIFIED (0.00%) Teledyne, Inc. 514 $ 7 ---------- Total Preferred Stock 7 ---------- MARKET VALUE PAR (000'S) ----------- ---------- BONDS (33.5%) AIRLINES (0.3%) Delta Air Lines, Inc., 9 3/4%, 5/19/03 $ 532,000 $ 622 Delta Air Lines, Inc., 9 3/4%, 6/1/03 3,513,000 4,108 Delta Air Lines, Inc., 9 3/4%, 6/1/03 870,000 1,017 Delta Air Lines, Inc., 9 3/4%, 6/1/03 870,000 1,017 ---------- Total 6,764 ---------- AUTO RELATED (0.6%) Hertz Corp., 9.04%, 6/14/00 4,100,000 4,585 General Motors Corporation, 8 4/5%, 3/1/21 6,500,000 8,148 ---------- 12,733 ---------- BANKS (0.6%) Natwest Capital Corporation, 12 1/8%, 11/15/02 10,450,000 11,593 ---------- BEVERAGES (0.6%) Coca-Cola Enterprises Inc., 8%, 1/4/05 10,000,000 11,398 ---------- CMO & LOAN-BACKED CERTIFICATES (5.5%) CIT RV Owner Trust, 6 1/4%, 1/15/11 6,566,806 6,644 Federal Home Loan Mortgage Corp., 7 1/4%, 4/15/18 10,325,000 10,442 Federal Home Loan Mortgage Corp., 7%, 3/15/07 7,250,000 7,428 Federal Home Loan Mortgage Corp., 6%, 7/15/07 19,250,000 19,288 Federal National Mortgage Assoc., 6 1/4%, 7/25/07 21,150,000 21,471 Federal National Mortgage Assoc., 6 3/4%, 12/25/23 6,500,000 6,412 Ford Motor Credit Grantor Trust, 5.9%, 10/15/00 6,808,877 6,847 Premier Auto Trust, 6.65%, 4/2/98 6,930,000 7,019 Rural Housing Trust, 6.33%, 4/1/26 9,859,581 9,769 Security Capital Industrial Trust, 7.3%, 5/15/01 8,000,000 8,067 World Omni Grantor Trust, 7.95%, 1/25/1 10,000,000 10,209 ---------- Total 113,596 ---------- CHEMICALS (0.5%) Dow Capital B.V., 8 1/2, 6/8/10 8,200,000 9,806 ---------- DIVERSIFIED (0.5%) Hanson Overseas BV, 6 3/4%, 9/15/05 10,000,000 10,351 ---------- FEDERAL GOVERNMENT AND AGENCIES (13.1%) Federal Home Loan Mortgage Corp., 7%, 7/1/25 4,889,608 4,934 Federal Home Loan Mortgage Corp., 7%, 7/1/25 4,154,794 4,192
76 80 NORTHWESTERN MUTUAL SERIES FUND, INC. BALANCED PORTFOLIO SCHEDULE OF INVESTMENTS DECEMBER 31, 1995
MARKET VALUE PAR (000'S) ----------- ---------- BONDS (CONTINUED) FEDERAL GOVERNMENT AND AGENCIES (CONTINUED) Federal Home Loan Mortgage Corp., 7%, 7/1/25 $ 4,880,888 $ 4,925 Federal Home Loan Mortgage Corp., 7%, 7/1/25 14,842,376 14,977 Government National Mortgage Assoc., 7%, 9/15/23 114,400 116 Government National Mortgage Assoc., 7%, 10/15/23 210,954 214 Government National Mortgage Assoc., 7 1/2%, 8/15/24 974,548 1,002 Government National Mortgage Assoc., 7%, 9/15/23 25,680 26 Government National Mortgage Assoc., 7%, 7/15/23 814,310 825 Government National Mortgage Assoc., 7%, 5/15/23 9,123,303 9,244 Government National Mortgage Assoc., 7%, 5/15/23 6,718,886 6,808 Government National Mortgage Assoc., 7%, 6/15/23 332,144 337 Government National Mortgage Assoc., 7%, 10/15/23 30,031 30 Government National Mortgage Assoc., 7%, 5/15/23 206,740 209 Government National Mortgage Assoc., 7 1/2%, 1/15/24 225,604 232 Government National Mortgage Assoc., 7%, 7/15/23 780,387 791 Government National Mortgage Assoc., 7%, 2/15/24 43,696 44 Government National Mortgage Assoc., 8 1/2%, 2/15/25 145,959 153 Government National Mortgage Assoc., 7%, 8/15/23 29,352 30 Government National Mortgage Assoc., 8 1/2%, 7/15/24 257,946 271 Government National Mortgage Assoc., 7%, 6/15/23 733,591 743 Government National Mortgage Assoc., 7%, 7/15/23 66,575 67 Government National Mortgage Assoc., 7%, 10/15/23 164,119 166 Government National Mortgage Assoc., 7%, 9/15/23 684,039 693 Government National Mortgage Assoc., 7 1/2%, 5/15/24 1,056,577 1,087 Government National Mortgage Assoc., 7%, 12/15/23 828,855 840 Government National Mortgage Assoc., 7%, 10/15/23 122,080 124 Government National Mortgage Assoc., 7 1/2%, 1/15/24 1,129,651 1,162 Government National Mortgage Assoc., 8 1/2%, 8/15/24 326,635 343 Government National Mortgage Assoc., 7%, 11/15/23 802,273 813 Government National Mortgage Assoc., 7%, 2/15/24 135,214 137 Government National Mortgage Assoc., 7%, 11/15/23 855,263 867 Government National Mortgage Assoc., 8 1/2%, 2/15/25 814,055 855 MARKET VALUE PAR (000'S) ----------- ---------- FEDERAL GOVERNMENT AND AGENCIES (CONTINUED) Government National Mortgage Assoc., 7%, 12/15/23 $ 707,558 $ 717 Government National Mortgage Assoc., 7%, 2/15/24 334,093 338 Government National Mortgage Assoc., 7%, 1/15/24 882,744 894 Government National Mortgage Assoc., 7%, 3/15/24 672,864 682 Government National Mortgage Assoc., 7%, 12/15/23 884,388 896 Government National Mortgage Assoc., 7%, 11/15/23 585,513 593 Government National Mortgage Assoc., 8 1/2%, 11/15/24 307,285 323 Government National Mortgage Assoc., 7%, 9/15/23 35,377 36 Government National Mortgage Assoc., 7%, 2/15/24 714,898 724 Government National Mortgage Assoc., 8 1/2%, 7/15/24 250,180 263 Government National Mortgage Assoc., 7%, 1/15/24 53,116 54 Government National Mortgage Assoc., 7%, 10/15/23 123,108 125 Government National Mortgage Assoc., 8 1/2%, 11/15/24 242,877 255 Government National Mortgage Assoc., 8 1/2%, 1/15/25 23,318 24 Government National Mortgage Assoc., 7%, 1/15/24 232,671 236 Government National Mortgage Assoc., 7 1/2%, 11/15/24 1,004,173 1,033 Government National Mortgage Assoc., 8 1/2%, 7/15/24 343,514 361 Government National Mortgage Assoc., 7 1/2%, 2/15/24 1,624,140 1,670 Government National Mortgage Assoc., 7 1/2%, 3/15/24 1,471,828 1,514 Government National Mortgage Assoc., 7 1/2%, 8/15/24 983,454 1,011 Government National Mortgage Assoc., 7%, 2/15/24 779,800 790 Government National Mortgage Assoc., 7%, 5/15/24 783,349 794 Government National Mortgage Assoc., 7 1/2%, 5/15/24 1,403,025 1,443 Government National Mortgage Assoc., 7 1/2%, 4/15/24 925,585 952 Government National Mortgage Assoc., 7 1/2%, 5/15/24 1,470,957 1,513 Government National Mortgage Assoc., 8 1/2%, 6/15/24 807,670 848 Government National Mortgage Assoc., 7%, 4/15/24 121,260 123 Government National Mortgage Assoc., 7%, 4/15/24 28,018 28 Government National Mortgage Assoc., 8 1/2%, 6/15/24 313,370 329 Government National Mortgage Assoc., 8 1/2%, 7/15/24 216,054 227 Government National Mortgage Assoc., 8 1/2%, 1/15/25 57,533 60 Government National Mortgage Assoc., 8 1/2%, 2/15/25 452,785 475
77 81 NORTHWESTERN MUTUAL SERIES FUND, INC. BALANCED PORTFOLIO SCHEDULE OF INVESTMENTS DECEMBER 31, 1995
MARKET VALUE PAR (000'S) ----------- ---------- BONDS (CONTINUED) FEDERAL GOVERNMENT AND AGENCIES (CONTINUED) Government National Mortgage Assoc., 8 1/2%, 8/15/24 $ 346,522 $ 364 Government National Mortgage Assoc., 7%, 4/15/24 95,608 97 Government National Mortgage Assoc., 7 1/2%, 6/15/24 1,430,337 1,471 Government National Mortgage Assoc., 8 1/2%, 7/15/24 230,976 242 Government National Mortgage Assoc., 8 1/2%, 8/15/24 242,134 254 Government National Mortgage Assoc., 7 1/2%, 8/15/24 990,722 1,019 Government National Mortgage Assoc., 8 1/2%, 1/15/25 135,128 142 Government National Mortgage Assoc., 7 1/2%, 8/15/24 1,241,086 1,276 Government National Mortgage Assoc., 8 1/2%, 8/15/24 221,321 232 Government National Mortgage Assoc., 8 1/2%, 2/15/25 218,143 229 Government National Mortgage Assoc., 7 1/2%, 6/15/24 37,639 39 Government National Mortgage Assoc., 8 1/2%, 8/15/24 262,482 276 Government National Mortgage Assoc., 8 1/2%, 9/15/24 368,912 387 Government National Mortgage Assoc., 8 1/2%, 2/15/25 51,224 54 Government National Mortgage Assoc., 8 1/2%, 12/15/24 594,381 624 Government National Mortgage Assoc., 8 1/2%, 2/15/25 59,142 62 Government National Mortgage Assoc., 8 1/2%, 2/15/25 388,127 407 Government National Mortgage Assoc., 8 1/2%, 2/15/23 150,445 158 Government National Mortgage Assoc., 8 1/2%, 9/15/22 658,395 691 Government National Mortgage Assoc., 8 1/2%, 10/15/22 589,478 619 Government National Mortgage Assoc., 7%, 5/15/23 483,212 490 Government National Mortgage Assoc., 8 1/2%, 9/15/21 229,888 241 Government National Mortgage Assoc., 8 1/2%, 7/15/21 195,514 205 Government National Mortgage Assoc., 8 1/2%, 5/15/22 415,111 436 Government National Mortgage Assoc., 8 1/2%, 10/15/22 14,085 15 Government National Mortgage Assoc., 8 1/2%, 9/15/22 690,066 724 Government National Mortgage Assoc., 8 1/2%, 10/15/22 732,365 769 Government National Mortgage Assoc., 8 1/2%, 1/15/23 241,106 253 Government National Mortgage Assoc., 8 1/2%, 2/15/23 191,240 201 Government National Mortgage Assoc., 8 1/2%, 12/15/22 476,037 500 U.S. Treasury, 7 1/8%, 2/15/23 28,000,000 31,981 MARKET VALUE PAR (000'S) ----------- ---------- FEDERAL GOVERNMENT AND AGENCIES (CONTINUED) U.S. Treasury, 7 1/2%, 11/15/24 8,500,000 $ 10,211 U.S. Treasury, 6 7/8%, 8/15/25 9,000,000 10,153 U.S. Treasury, 4 3/4%, 8/31/98 $11,250,000 11,113 U.S. Treasury, 7 1/4%, 8/15/04 26,000,000 28,917 U.S. Treasury, 7 3/4%, 11/30/99 30,000,000 32,503 U.S. Treasury, 7 1/2%, 1/31/97 30,000,000 30,722 U.S. Treasury, 7 3/4%, 1/31/00 25,000,000 27,164 ---------- Total 271,829 ---------- FINANCE COMPANIES (2.9%) Associates Corp. of North America, 6 7/8%, 1/15/97 7,800,000 7,911 Associates Corp. of North America, 7.95%, 2/15/10 5,550,000 6,426 Avco Financial Services Inc., 5 7/8%, 10/15/97 6,800,000 6,843 Beneficial Corp., 6.86%, 11/19/97 7,800,000 7,978 Beneficial Corp., 9 3/8%, 7/28/97 5,000,000 5,284 Ford Motor Credit Company, 5 5/8%, 3/3/97 9,000,000 9,012 General Motors Acceptance Corp., 8 3/8%, 5/1/97 3,000,000 3,098 General Motors Acceptance Corp., 6 5/8%, 10/1/02 12,200,000 12,546 ---------- Total 59,098 ---------- FOODS (0.2%) Nabisco Inc., 8%, 1/15/00 3,500,000 3,721 ---------- FOREIGN GOVERNMENT BONDS (1.0%) Province of Manitoba, 7 3/4%, 7/17/16 9,672,000 10,891 Province of Quebec, 7 1/8%, 2/9/24 9,500,000 9,576 ---------- Total 20,467 ---------- MEDIA (1.8%) News America Holdings Inc., 7 1/2%, 3/1/00 6,500,000 6,819 News America Holdings Inc., 8.45%, 8/1/34 10,000,000 11,622 Tele-Communications, Inc., 7 3/8%, 2/15/00 8,000,000 8,310 Tele-Communications, Inc., 7 7/8%, 8/1/13 3,000,000 3,101 Time Warner Entertainment Inc., 8 7/8%, 10/1/12 1,500,000 1,678 Time Warner Inc., 7 3/4%, 6/15/05 6,300,000 6,569 ---------- Total 38,099 ---------- MUNICIPAL BONDS (0.1%) Government Trust Certificates, 8%, 5/15/98 2,696,913 2,765 ---------- OFFICE EQUIPMENT (0.3%) International Business Machines Corp., 63/8%, 11/1/97 7,000,000 7,113 ---------- TOBACCO (0.7%) Philip Morris Companies, Inc., 9 1/4%, 2/15/00 2,100,000 2,348 Philip Morris Companies, Inc., 7 1/4%, 1/15/03 3,000,000 3,163 RJR Nabisco Inc., 8 5/8%, 12/1/02 8,000,000 8,298 ---------- Total 13,809 ----------
78 82 NORTHWESTERN MUTUAL SERIES FUND, INC. BALANCED PORTFOLIO SCHEDULE OF INVESTMENTS DECEMBER 31, 1995
MARKET VALUE PAR (000'S) ----------- ---------- BONDS (CONTINUED) UTILITY-ELECTRIC (4.8%) Atlantic City Electric Company, 6 5/8%, 8/1/13 $ 4,000,000 $ 3,901 Cleveland Electric Illuminating Co., 7 3/8%, 6/1/03 4,000,000 3,782 Dayton Power & Light Company, 8.15%, 1/15/26 5,750,000 6,366 Long Island Lighting Co., 9 5/8%, 7/1/24 1,500,000 1,537 Long Island Lighting Co., 7%, 3/1/04 10,000,000 9,622 Niagara Mohawk Power Corp., 5 7/8%, 9/1/02 3,275,000 2,893 Pacific Gas & Electric Co., 7 1/4%, 3/1/26 9,050,000 9,073 Pacific Gas & Electric Co., 5 3/8%, 8/1/98 5,000,000 4,949 Pacific Gas & Electric Co., 6 3/4%, 10/1/23 6,400,000 6,104 PECO Energy Company, 7 1/2%, 1/15/99 4,250,000 4,452 PECO Energy Company, 7 3/4%, 3/1/23 8,850,000 9,258 Public Service Electric & Gas Co., 6 1/8%, 8/1/02 9,000,000 8,995 Southern California Edison Co., 7 1/4%, 3/1/26 10,000,000 10,038 Texas Utilities Electric Co., 7 7/8%, 3/1/23 7,750,000 8,289 UNICOM Corp., 6 1/2%, 4/15/00 10,600,000 10,760 ---------- Total 100,019 ---------- Total Bonds 693,161 ---------- MONEY MARKET INVESTMENTS (15.7%) CHEMICALS (0.8%) E.I. du Pont de Nemours & Company, 5.73%, 1/5/96 $16,000,000 $ 15,990 ---------- DRUGS (1.0%) +American Home Products Corp., 5.73%, 1/19/96 21,400,000 21,335 ---------- FEDERAL GOVERNMENT AND AGENCIES (1.5%) +U.S. Treasury, 5.25%, 5/30/96 6,000,000 5,868 U.S. Treasury, 6 7/8%, 10/31/96 25,000,000 25,328 ---------- Total 31,196 ---------- MARKET VALUE PAR (000'S) ----------- ---------- FINANCE COMPANIES (2.3%) Cargill Financial Services Corp., 5.7%, 1/12/96 $22,700,000 $ 22,661 Ford Motor Credit Company, 5.73%, 1/8/96 25,000,000 24,972 ---------- Total 47,633 ---------- FINANCIAL SERVICES (4.2%) American General Finance Corp., 8 7/8%, 3/15/96 6,050,000 6,089 BAT Capital Corporation, 5.72%, 1/18/96 19,805,000 19,749 IBM Credit Corporation, 5.73%, 1/17/96 20,500,000 20,448 +Transamerica Financial Corp., 5.7%, 1/30/96 15,300,000 15,227 Transamerica Financial Corp., 8.55%, 6/15/96 10,950,000 11,098 +Xerox Credit Corporation, 5.65%, 2/2/96 14,700,000 14,626 ---------- Total 87,237 ---------- FOODS (2.2%) H.J. Heinz Company, 5.75%, 1/16/96 25,000,000 24,940 Nestle Capital Corp., 5.63%, 1/4/96 20,000,000 19,991 ---------- Total 44,931 ---------- PRINTING & PUBLISHING (2.0%) +Gannett Company Inc., 5.82%, 1/24/96 21,100,000 21,022 Gannett Company Inc., 5.85%, 1/9/96 20,000,000 19,974 ---------- Total 40,996 ---------- PROFESSIONAL SERVICES (1.0%) PHH Corp., 5.76%, 1/10/96 20,700,000 20,670 ---------- UTILITY-ELECTRIC (0.0%) Texas Utilities Electric Co., 9.39%, 11/21/96 250,000 258 ---------- UTILITY-TELEPHONE (0.7%) +SBC Communications Incorporated, 5.525%, 1/29/96 15,900,000 15,832 ---------- Total Money Market Investments 326,078 ---------- Total Investments $2,070,621 ==========
* Non-Income Producing + Partially or fully held by the custodian in a segregated account as collateral for open financial futures contracts. Information regarding open futures contracts as of December 31, 1995 is summarized below:
UNREALIZED NUMBER OF EXPIRATION (DEPRECIATION) ISSUER CONTRACTS DATE (000'S) - -------------------- --------- ---------- -------------- S&P 500 Stock Index 246 March 1996 $ (1,258)
The Accompanying Notes are an Integral Part of the Financial Statements 79 83 NORTHWESTERN MUTUAL LIFE 720 East Wisconsin Avenue Milwaukee, Wisconsin 53202 TO: POLICYOWNER SERVICES DEPARTMENT - VARIABLE LIFE (VLI) FROM: ____________________________________________ GA: _________________________________ REQUEST TO TRANSFER ASSETS AND/OR CHANGE PREMIUM ALLOCATION VLI INSURED: ___________________________________ POLICY NUMBER*_____________________________ DATE ________________________________ BUSINESS NUMBER: GA#: _______________________________________ SA#: ______________________________________ HOME NUMBER:_________________________ / / 1. TRANSFER ASSETS AND/OR CHANGE PREMIUM ALLOCATION If you wish to transfer current assets only, fill in column A. If you wish to do an allocation of future premiums and dividends only, fill in column B. If you wish to transfer current assets and change the allocation of future premiums and dividends, fill in both columns A and B. THE MAXIMUM NUMBER OF DIVISIONS YOU MAY CHOOSE FOR BOTH COLUMNS IS 6. USE WHOLE PERCENTAGES ONLY. THE MINIMUM PERCENT FOR ANY INVESTMENT DIVISION IS 10%. A B DISTRIBUTION ALLOCATION OF OF CURRENT ASSETS FUTURE PREMIUMS/DIVIDENDS Select Bond Division .................................. __________________% __________________% International Equity Division ......................... __________________% __________________% Money Market Division ................................. __________________% __________________% Balanced Division ..................................... __________________% __________________% Index 500 Stock Division .............................. __________________% __________________% Aggressive Growth Stock Division ...................... __________________% __________________% High Yield Bond Division .............................. __________________% __________________% Growth Stock Division ................................. __________________% __________________% Growth and Income Stock Division ...................... __________________% __________________% TOTAL .............................................. _______________100% _______________100% NOTE: TWELVE ASSET TRANSFERS MAY BE MADE PER YEAR. - ----------------------------------------------------------------------------------------------------------------------------------- / / 2. DOLLAR COST AVERAGING (VCL ONLY) To elect Dollar Cost Averaging, there must be current assets in the Money Market Division or between 10% and 100% of future premium must be allocated to the Money Market Division. / / Option One: Transfer in monthly installments so that the Money Market balance will be zero on the next policy anniversary date. / / Option Two: Specified amount to be transferred monthly of $_____________________. USE WHOLE PERCENTAGES ONLY. THERE MUST BE A MINIMUM OF 10% IN EACH DIVISION SELECTED. Select Bond Division .................................. __________________% International Equity Division ......................... __________________% Balanced Division ..................................... __________________% Index 500 Stock Division .............................. __________________% Aggressive Growth Stock Division ...................... __________________% High Yield Bond Division .............................. __________________% Growth Stock Division ................................. __________________% Growth and Income Stock Division ...................... __________________% TOTAL .............................................. _______________100% - ----------------------------------------------------------------------------------------------------------------------------------- / / 3. TERMINATION OF DOLLAR COST AVERAGING (VCL ONLY) / / Immediately / / Next Policy Anniversary Any existing funds will remain in the Money Market Division unless you elect to transfer assets. Future premium and dividends will be allocated on the policy anniversary date according to your allocation instructions. NO MORE THAN SIX DIVISIONS TOTAL CAN BE SELECTED FOR DOLLAR COST AVERAGING. DISTRIBUTION OF CURRENT ASSETS AND FUTURE ALLOCATION OF FUTURE PREMIUMS/DIVIDENDS. - ---------------------------------------------------------------------------------------------------------------------------------- *ADDITIONAL POLICY NUMBERS MAY BE ADDED IF THE TRANSACTIONS REQUESTED ARE IDENTICAL AND ALL POLICIES ARE OWNED BY THE SAME OWNER. SIGNATURES OF OWNER(S)/TRUSTEE REQUIRED (TITLE MUST BE INCLUDED): ______________________________________________________________ Date Signed ______________________________________ ______________________________________________________________ Date Signed ______________________________________
84 HOW TO SUBMIT FIRST CLASS MAIL Please mail form to Northwestern Mutual Life, 720 E. Wisconsin Ave., Milwaukee, WI 53202, ATTENTION POS: / / East / / West / / Central / / South FAX The completed/signed transfer/change of allocation form may be FAXed to the Home Office at the numbers provided. Fax telephone numbers listed by POS Regions are: East 414-299-4268 Central 414-299-4982 West 414-299-4268 South 414-299-3382 The original transfer form is NOT needed. Please keep for your records. See below for effective date. LINK NML Agents only: If timing is critical and FAX equipment is unavailable, the transfer/change of allocation request may be LINKed to the Home Office. You MUST have a completed, signed transfer form in your possession. The original signed transfer form must be received in the Home Office within five (5) working days from the date of the LINK. The effective date will be the date that the LINK is received in the Home Office. SIGNATURE INSTRUCTIONS SIGNATURE BY OWNER All Owners must sign their name as it appears in the policy contract. If the Owner's name has changed since the policy was issued, he/she should add his/her present surname to his/her name as it appears in the policy. SIGNATURE BY ASSIGNEE If the policy is assigned and the assignee is a bank, savings and loan association, other financial institution or corporation, an officer must sign with his/her title. Name of corporate entity must appear above the signature. SIGNATURE ON BEHALF OF CORPORATION If the policyowner is a corporation, an officer of the corporation must sign on behalf of the corporation with his/her title. The name of the corporation must appear above the signature. SIGNATURE ON BEHALF OF PARTNERSHIP If the posicy owner is a partnership, the name of the partnership must appear above the signature. A partner other than the insured must sign. SIGNATURE ON BEHALF OF TRUST If the policyowner is a Trust, the authorized Trustee must sign his/her name, followed by the word "Trustee." The name of the Trust must appear above the signature. EFFECTIVE DATE IF THIS SIGNED FORM IS RECEIVED AT NML'S HOME OFFICE PRIOR TO 3:00 P.M. CENTRAL TIME, THE TRANSFER OF ASSETS WILL BE EFFECTIVE THE DATE OF RECEIPT. IF RECEIVED AFTER 3:00 P.M. CENTRAL TIME, THE TRANSFER/ALLOCATION CHANGE WILL BE EFFECTIVE THE FOLLOWING BUSINESS DAY. -----END PRIVACY-ENHANCED MESSAGE-----